Major airlines line up to split $25 billion in payroll aid

    Photo credit to Sean MacEntee.

    Washington, DC (AP) - The Treasury Department has reached agreements in principle with the major U.S. airlines for federal aid to pay workers and keep them employed through September.

    The assistance will be a mix of cash and loans totaling $25 billion, and Treasury's terms would let the government take a small ownership stake in the leading airlines.

    The carriers did not want to give up equity, but they had little leverage.   Their business has collapsed as the COVID-19 pandemic reduces air travel to a trickle.

    American and Delta will each get more than $5 billion.  They could apply for additional loans from a separate $25 billion pool.

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