Due to the coronavirus outbreak, domestic traffic in the United States decreased by 95%.
The US Treasury Department said it had provided $ 2.9 billion in payroll assistance for 54 small passenger carriers and two major passenger airlines while it negotiates details of an agreement with six other major airlines.
The Ministry of Finance allocates 50% of the planned funds to major airlines. The remaining amount will be provided in the form of several payments. In total, the Ministry of Finance will provide passenger airlines with $25 billion, which is intended for calculating salaries for employees of companies. Air carriers will have to return 30% of the funds provided in the form of low-interest loans.
The Ministry of Finance stated that it approved the agreement on the allocation of grants with “Allegiant air,” “American airlines,” “Delta airlines,” “Southwest airlines,” “Spirit” and “United.”
The coronavirus pandemic caused severe damage to airlines, resulting in a 95% reduction in domestic traffic.