The airlines are reportedly looking for a $50 billion package to help offset potential bankruptcies.
U.S. airlines are asking the government for more than $50 billion, including both direct aid and loan guarantees, CNBC reported.
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The major airlines are looking for a government bailout.
Remember, just a week ago, we were getting headlines from the major airlines saying that they could absorb the costs of the pandemic, but now--with travel bans being enacted all over the world--that story has changed.
According to a Wall Street Journal report, carriers such as Delta and American, among others, are asking for over $50 billion.
This $50 billion does not include the $10 billion that the U.S. airports have reportedly asked for.
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The package, according to reports, could include government-backed loans, cash grants, and other measures--which could include relief from taxes and fees.
"We're going to be backstopping the airlines. We’re going to be helping them very much," President Donald Trump told reporters.
Helane Becker, analyst with Cowen, said in a note that “airlines are in freefall.” She also wrote, “we expect additional airline bankruptcies.”
And that also doesn’t cover Boeing, which is asking for short-term aid for itself, suppliers and airlines.
The company is attempting to avoid layoffs and damage to the smaller companies that make parts and systems for its aircrafts, according to Bloomberg.
Let’s go over how the airlines and Boeing have fared in the last month.
American Airlines is down 44%, United Airlines is down 55%, Alaska Air is down 50%, Southwest is down 34%, Delta is down 39% and Hawaiian Holdings is down 52% and JetBlue is down 50%.
Boeing is down 61%.
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