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Treasury Finalizes Agreements with Major Airlines, Disburses Initial Payroll Support Program Payment

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Treasury Finalizes Agreements with Major Airlines, Disburses Initial Payroll Support Program Payments

Today the U.S. Department of the Treasury concluded Payroll Support Program agreements with Allegiant Air, American Airlines, Delta Air Lines, Southwest Airlines, Spirit Airlines, and United Airlines.

Alaska Airlines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, and SkyWest Airlines have also indicated that they plan to participate in the Payroll Support Program.

Together, these airlines represent nearly 95 percent of U.S. airline capacity. The agreements will support airline workers and help safeguard the strategically important aviation industry, while ensuring that taxpayers are appropriately compensated.

Treasury also made the first Payroll Support Program payments to passenger air carriers today, disbursing a total of $2.9 billion in initial payments to approved applicants, including two major airlines and 54 smaller passenger air carriers. Treasury will make additional payments to approved applicants on a rolling basis, including to the major airlines that concluded Payroll Support Program agreements today. All funds provided under the program can be used only for the continuation of payment of employee wages, salaries, and benefits.

“The Payroll Support Program is critical to supporting American workers and preserving our airline industry, which is a vital part of the U.S. economy,” said Secretary Mnuchin. “We continue to work quickly to deliver this needed relief.” 

The Payroll Support Program, which was created under Division A, Title IV, Subtitle B of the CARES Act, provides payroll support for American workers employed by passenger air carriers, cargo air carriers, and related contractors. Treasury has received hundreds of applications for the Payroll Support Program from passenger air carriers, cargo air carriers, and contractors, and is working to review and approve applications as quickly as possible.

This press release was sourced from US Treasury on 20-Apr-2020.