The US government has handed American Airlines a $5.8 billion bailout to help pay staff salaries.
The deal compromises a direct grant of $4.1 billion and a low-interest loan of $1.7 billion, and the airline will also separately apply for a $4.75 billion loan from the US Treasury.
Chief executive Doug Parker said, “The Payroll Support Program recognises the extraordinary dedication of our entire team, and importantly, sustains the critical air service being provided by our frontline team members.
“Those team members are our heroes, and we are elated that this program will enable us to continue to employ and pay our team while they fly through this period of depressed consumer demand.
“This program would not have come about without the collaborative, bipartisan approach that was undertaken, and we applaud the administration, Secretary Mnuchin, Secretary Chao and congressional leadership for their efforts and vision.
“We also are thankful for the extraordinary support of our team and the unions that represent them.”
The funds are expected to ensure that no furloughs or pay reduction will affect staff through to 30 September, giving the aviation industry time to recover and demand to regrow.
However, airlines that receive government assistance under the new Coronavirus Aid, Relief, and Economic Security Act must maintain a minimum amount of domestic service.
For destinations that are served by the airline for at least five days a week with one flight per day, the airline must continue to fly for five days a week with at least one flight per day.
If a carrier flies to a destination fewer than five days a week, airlines must serve the destination with at least one flight on one day per week.
