Southwest Airlines to Receive Disbursement of Funds as Part of the CARES Act Payroll Support Program

Southwest Airlines today finalized terms with the United States Department of Treasury regarding the acceptance and disbursement of funds included in the Payroll Support Program under the CARES Act. As part of the agreement, Southwest will receive more than $3.2 billion in disbursements over the next several months. The funding supports job protection for more than 60,000 Southwest Employees through September 30, 2020.

"On behalf of Southwest Airlines and our more than 60,000 Employees, I want to express my sincere gratitude to Secretary Mnuchin and the U.S. Department of Treasury, as well as Southwest's Legal and Financial Teams, for finalizing our agreement to participate in the Payroll Support Program," said Southwest Chairman and CEO Gary Kelly. "This assistance will support valuable jobs which exist to serve the flying public and the infrastructure, supply chain, and recovery of our national economy."

This deal allows Southwest to receive an immediate payment of approximately $1.6 billion of the more than $3.2 billion total proceeds, and the remainder will be paid in installments during May, June, and July.

The company issued a press release last week with preliminary information, which can be viewed here on SWAMedia.com. The company plans to issue a Form 8-K with the SEC disclosing the terms of the finalized deal.