The US looks poised to extend its Payroll Support Program (PSP) for airlines and airline contractors to the end of September.
This would be a component of President Biden's US$1,9 trillion (R27,8 trn) COVID-19 rescue legislation.
Since the start of the pandemic, US airlines have received $40bn (R585bn) in Federal payroll support due to end on March 31. The new proposal would provide carriers with another $15bn (R219bn), including $1bn (R14,6bn) for contracted ground workers. In exchange, airlines would have to commit to continue to employ all existing non-management staff to the end of September.
US airlines shed 37 000 jobs in October 2020, after the original PSP ended. Airlines were then required to offer furloughed employees their jobs back in December after a second round of funding was approved.
The six largest US carriers lost a combined $34bn (R497bn) in 2020. American has already warned 13 000 employees of new furloughs should PSP expire in March.
