- US airlines and the Treasury Department reached an agreement in principle on Tuesday over up to $25 billion in payroll assistance, part of the $50 billion coronavirus bailout for the airline industry.
- American Airlines said it would receive $5.8 billion in payroll assistance under the CARES Act.
- Alaska Airlines, Allegiant Air, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines were included in the agreement, but did not immediately announce figures.
- This is a developing story. Check back for more.
- Visit Business Insider's homepage for more stories.
Major US airlines and the US Treasury Department reached a deal on Tuesday over billions of dollars in coronavirus aid.
The coronavirus bailout package, the CARES Act, contains two provisions for aid to the airline industry, split into two $25 billion funds for passenger airlines: Payroll grants, essentially aid for airline workers paid through their employers, and loans, which are intended to help inject liquidity into the struggling firms.
Tuesday's agreement surrounded the payroll grants. The CARES Act budgeted up to $25 billion in grants for passenger airlines, and $4 billion for cargo airlines. An additional $3 billion is set aside for airline contractors.
According to a statement from the Treasury Secretary Steven Mnuchin, Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines all applied for the grants.
American Airlines, in a press release and a separate memo to employees, said that it had received $5.8 billion in payroll assistance. The amount will be split into a $4.1 billion grant, and a $1.7 billion loan.
This is a developing story. Check back for more.
Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story.
Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.