Delta Air Lines Inc logo

DAL - Delta Air Lines Inc News Story

$49.27 -0.5  -1.1%

Last Trade - 09/04/21

Sector
Industrials
Size
Large Cap
Market Cap £22.94bn
Enterprise Value £33.92bn
Revenue £12.47bn
Position in Universe 408th / 6827

UPDATE 1-U.S airlines remain in 'dire straits,' need new government assistance -industry group

Tue 2nd March, 2021 4:56pm
(Updates with hearing underway, lawmaker reaction)
    By David Shepardson and Tracy Rucinski
    WASHINGTON, March 2 (Reuters) - The head of a group
representing major U.S. passenger airlines and a senior union
official made the case to lawmakers on Tuesday for a third round
of federal government assistance, according to testimony seen by
Reuters.
    Since March 2020, Congress has awarded passenger and cargo
airlines, airports and contractors nearly $90 billion in
government assistance and low-cost loans, including two prior
rounds of payroll assistance for U.S. passenger airlines
totaling $40 billion.
    The $1.9 trillion COVID-19 relief package approved by the
U.S. House last week includes another $14 billion for passenger
airlines to keep workers on payrolls for an additional six
months. It awaits action by the U.S. Senate.
    "We are still struggling and in dire straits," Nick Calio,
who heads Airlines for America, a trade group representing
American Airlines  AAL.O , Delta Air Lines  DAL.N , United
Airlines  UAL.O  and others, said in testimony before the House
Transportation and Infrastructure's aviation subcommittee. "We
were hoping it would be better by now."
    He warned that without the new round of assistance tens of
thousands of aviation workers will "lose their jobs — or
experience reductions to wages and benefits — effective April
1."
    In 2020, U.S. airline passenger traffic fell by 60% to 368
million passengers, the lowest since 1984, and reported pre-tax
losses of $46 billion. They continue to burn "an estimated $150
million of cash every day," Calio said.
    The current COVID-19 bill also includes $8 billion for
airports and concessionaires and $1 billion for airline
contractors.
    Joseph DePete, president of the Air Line Pilots Association,
told lawmakers that "dismal long-term booking commitments and
the near absence of business travel demand is leaving some
carriers with too little certainty to reactivate and retrain
furloughed or otherwise inactive pilots."
    Representative Peter DeFazio, who chairs the Transportation
committee, said he is "hoping by September 30 we are not going
to need another extension" of airline payroll assistance.

 (Reporting by David Shepardson and Tracy Rucinski; Editing by
Gerry Doyle and Dan Grebler)
 ((tracy.rucinski@thomsonreuters.com;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.