The airline industry has been taken on a roller coaster ride this week with President Donald Trump quickly reversing course on talks over another $25 billion relief package for U.S. carriers on Tuesday.
In the latest turn, discussions appear to be back on for a standalone bailout for airlines.
Airline stocks rallied on Wednesday following news that Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi (D-Calif.) were re-engaging in negotiations to secure a second round of financial aid for the airline industry.
Speaker Pelosi & Secretary Mnuchin spoke by phone at 9:33 a.m. The Secretary inquired about a standalone airlines bill. The Speaker reminded him that Republicans blocked that bill on Friday & asked him to review the DeFazio bill so that they could have an informed conversation.
— Drew Hammill (@Drew_Hammill) October 7, 2020
The Speaker & Secretary Mnuchin had a 20-minute phone call at approximately 6 p.m. tonight on a standalone airlines bill. The two agreed to talk again tomorrow.
— Drew Hammill (@Drew_Hammill) October 7, 2020
“There continues to be strong, broad, and bipartisan willingness to protect jobs and livelihoods in the airline industry by extending the successful Payroll Support Program (PSP), which was part of the CARES Act,” Airlines for America and other industry groups and unions wrote in a letter to the majority and minority leaders of both the Senate and the House on Wednesday. “Unfortunately, efforts to do so did not come to fruition before the program expired on September 30. As a result, several U.S. airlines had no choice but to move forward with tens of thousands of furloughs last week, and many more job losses are expected across the industry in the weeks ahead if the PSP is not extended.”
“Now, in the absence of an overall COVID-19 relief package, we urge you to advance standalone legislation to extend the PSP. Both the Senate and the House have introduced bills that would protect airline jobs and air service through an extension of the PSP,” the letter continued. “Overwhelming majorities in both chambers support doing so. Notably, leadership in both chambers have already taken steps to advance the legislation. During circumstances as dire and significant as these, an idea that enjoys resounding support from majorities in both parties and in both houses of Congress should not fail.”
The airline industry has been devastated by the ongoing COVID-19 pandemic, with suspended routes and cuts to service being followed by mass layoffs last week. The International Air Transport Association (IATA) estimates that airlines will cap off the disastrous year by losing approximately $77 billion between June and December 2020.
Any relief bill for the airline industry will need to get done soon as Congress is set to break for a month in advance of the November 3 election.
