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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

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

Tue 2nd March, 2021 12:00pm
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 will make the case Tuesday to lawmakers for a third
round of 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.
     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, will tell the House
Transportation and Infrastructure's aviation subcommittee that
tens of thousands of aviation workers will "lose their jobs — or
experience reductions to wages and benefits — effective April
1."
    Calio's testimony adds that "funding is an explicit
recognition that the industry remains in dire straits, even
before factoring in the certainty that it will be inundated with
debt for years to come."
    In 2020, U.S. airlines saw passenger traffic fall by 60% to
368 million passengers, the lowest number since 1984 and
reported pretax losses of $46 billion. They continue to burn "an
estimated $150 million of cash every day," Calio will say.
    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,
will tell 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."
    The heads of the General Aviation Manufacturers Association,
Congress and the National Business Aviation Association will
echo industry calls for steps to spur the production of
sustainable aviation fuels with tax incentives.   

 (Reporting by David Shepardson and Tracy Rucinski. Editing by
Gerry Doyle)
 ((tracy.rucinski@thomsonreuters.com;))
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