Airlines for America (A4A) officials are espousing the benefits of the recently passed CARES Act, noting the Direct Payroll Assistance provisions provide immediate financial relief to fund airline payrolls.
“During the current health crisis, air carriers have been doing everything possible to protect the 750,000 jobs of men and women who are directly employed by U.S. airlines, including pilots, flight attendants, gate agents, and mechanics, as well as the 10 million jobs supported by the industry,” A4A President and CEO Nicholas E. Calio said via an organization statement. “We remain hopeful that the federal government will expeditiously release these funds with as few restrictions as possible to ensure airlines are able to utilize these provisions and meet our payroll.”
Calio said that prior to the COVID-19 pandemic, airlines were transporting a record 2.5 million passengers and 58,000 tons of cargo each day. Currently, carriers are burning through cash, with cancellations outpacing new bookings.
He said planes are only 10 to 20 percent full and new bookings are showing 80 to 90 percent declines in traffic even as airlines make dramatic cuts in capacity.
Calio concluded by indicating since early March, air carriers have seen their positions of strong financial health deteriorate at an unprecedented and unsustainable pace and the future remains uncertain.