$25 billion to be awarded to major U.S. airlines to keep workers employed

WASHINGTON (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. And they could apply for additional loans from a separate $25 billion pool.