Jim Cramer: $25 Billion Can't Save Airlines Without Vaccine
Airline stocks--including American Airlines, Delta and United--got a boost after a Reuters report that suggested lawmakers are looking to offer billions more in payroll assistance support to the beaten-down sector.
Reuters reported that 16 Republican Senators have backed a plan that would extend the $25 billion of payroll assistance already in place beyond the current September 30 deadline. This came after Reuters saw a letter signed by, among others, Colorado's Corey Gardner and Florida's Marco Rubio.
Last week, the International Air Transport Association, an industry lobby group, warned it would take until 2024 for global airline passenger traffic to return to pre-pandemic levels, while June data showed the lowest 'load factor' data in industry history.
President Donald Trump has said that he's in favor to give airlines $25 billion more.
However, Jim Cramer said that this aid will not be enough to stop the mass layoffs and furloughs that the airline industry is facing in October. Cramer said along with many industries, the future of the airlines is "contingent" on a coronavirus vaccine.
More From Cramer Thursday: Jim Cramer Calls Honeywell 'Single Best Stock In This Environment'
Following a CNBC interview with Nancy Pelosi, Cramer said that Congress should consider simply stating it will support airlines until there is a vaccine, instead of offering another piecemeal solution.
You can follow Katherine Ross on Twitter at @byKatherineRoss.
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