WASHINGTON (Reuters) – The U.S. Treasury Department said on Saturday it has released $9.5 billion in additional funds from the Payroll Support Program to U.S. air carriers, bringing to $12.4 billion provided to the airline sector hit hard by the coronavirus pandemic.
FILE PHOTO: American Airlines passenger plane (L) parked due to flight reductions made to slow the spread of coronavirus disease (COVID-19), at Tulsa International Airport in Tulsa, Oklahoma, U.S. March 23, 2020. The planes on the right are 737 MAX, parked for reasons other than the coronavirus. REUTERS/Nick Oxford/File Photo
In total, the government has disbursed grant funds to 10 major airlines and 83 smaller carriers.
Congress approved $25 billion in grants for payroll assistance for passenger airlines. Treasury required major airlines receiving more than $100 million in assistance to repay 30% in low-interest loans over 10 years and issue warrants equal to 10% of the loan amount.
Airlines must not cut pay or jobs through Sept. 30 as a condition of the grants and are barred from buying back stock or payin