U.S. airlines to accept billions in federal loans
The largest U.S. air carriers have struck deals for billions in federal loans to help them weather the global health crisis.
The news comes as airlines grapple with a recent surge of outbreaks in the U.S.
U.S. airlines have drastically reduced their flight capacity and warned that tens of thousands of jobs could be at risk as the entire industry braces for a very slow recovery.
United and Delta are among the major U.S. carriers that that will accept in total $25 billion dollars in loans with the Treasury Department.
That money was set aside for airlines under the CARES Act, a relief package passed in March by Congress.
Also on Tuesday United warned employees that the resurgence of the health crisis was hitting bookings and threatening a rebound in travel demand and jobs.
According to a filing from the airline, United employees should expect notices as soon as this week about potential furloughs, effective October 1.
While travel has bounced back in some areas over the past two months, United has seen reservations for the coming month slide after New York, New Jersey and Connecticut all announced they would require travelers from hotspot states to quarantine for two weeks.
And just last week, Delta announced they would be scaling back the number of flights it had planned for next month.
