U.S. airlines, shell-shocked by the global effects of the coronavirus that has cut travel demand by 90 percent, received some good news on Saturday.
The U.S. Treasury Department has released $9.5 billion in additional monies earmarked for the grants associated with the Payroll Support Program as part of the CARES Act stimulus program signed into law in March.
The package called for $25 billion in grants for payroll assistance and $25 billion in loans for the airlines.
So far, according to Reuters News Service, the government has distributed monies to 10 major domestic airlines and 83 smaller carriers.
Airlines receiving more than $100 million from the grant portion of the stimulus must repay 30 percent in low-interest loans over 10 years and issue warrants to the government equal to 10 percent of the loan amount.
All airlines had to guarantee they would not cut pay or furlough employees until at least Sept. 30 as one of the conditions of the grant money.
Reuters noted that the four largest domestic airlines - American, Delta, Southwest and United - are receiving $19.2 billion of the $25 billion in grants, with payments spread out through July.
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