The US Treasury has agreed to provide $25bn package to commercial airlines, which have been reeling from the pandemic. Steel manufacturers in the country, meanwhile, were given a $500mn stimulus package.
Ten of the leading commercial US airlines struck a deal with Treasury, valued at $25bn, to help weather the economic storm caused by the COVID-19 crisis. Delta, United, JetBlue, Southwest, and Alaska were included in the financial aid agreement today, which was initially signed last week by Treasury for American, Frontier, Hawaiian, SkyWest, and Spirit Airlines. The amount allocated to each airline under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was not disclosed by Treasury.
The airline industry, which forms one of the biggest blocks of the US economy and its exports, is worth $1.7tn. Demand has been destroyed by travel restrictions and global lockdowns caused by the pandemic since mid-March, leading to major losses by most airlines.
Meanwhile, around 2,000 steel manufacturers were given small business loans under the Paycheck Protection Program run by the Small Business Administration department of Treasury.
The steel manufacturing industry reached a standstill during the lockdown, with construction as well as mills and plants being shuttered to curb spread of the disease. Capacity utilization is now recovering, reaching 56pc for the week ending July 4, according to American Iron and Steel Institute data.