The U.S. Treasury Department has started to send money to U.S. airlines affected by the coronavirus outbreak as part of the CARES Act.
The $2 trillion stimulus package set aside $50 billion for airlines that are available in the form of grants and loans.
The department made the first Payroll Support Program payments to passenger air carriers today, disbursing a total of $2.9 billion in initial payments to approved applicants.
Treasury also finalized agreements on funding for the Payroll Support Program with major air carriers, including Allegiant, American, Delta, Southwest, Spirit and United Airlines. The funds will be used to assist frontline workers including pilots, flight attendants and mechanics.
“The Payroll Support Program is critical to supporting American workers and preserving our airline industry, which is a vital part of the U.S. economy,” Treasury Secretary Steven Mnuchin said in a statement from the Treasury Department. “We continue to work quickly to deliver this needed relief.”
Alaska Airlines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, and SkyWest Airlines have also indicated that they are interested in participating in the program.
The Treasury Department Treasury will make additional payments to approved applicants on a rolling basis. All funds from the program are only used for the continuation of payment of employee wages, salaries and benefits.
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