Alaska Airlines, Horizon Air and Southwest Airlines have agreed to the US Treasury’s general terms regarding their participation in the Payroll Support Program (PSP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Until yesterday, the US Treasury was reportedly in discussions with the country’s major airlines over coronavirus-relief payments.
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Alaska Airlines and Horizon Air will receive a total of $992m, which will be leveraged exclusively for the cost of employee payroll and benefits.
It is expected to cover 70% of budgeted costs through 30 September.
Alaska Air Group chairman and CEO Brad Tilden said: “We are grateful for and humbled by this support. This aid will bring immediate and sorely needed liquidity to the airline industry and will enable all airlines, including Alaska, to continue serving our customers and to keep our people at work, while we adjust to an extraordinary reduction in demand.”
Additionally, Alaska Airlines and Horizon Air have communicated to the US Treasury about their intent to apply for $1.128bn in federal loans through a separate programme authorised under the CARES Act.
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By GlobalDataIn addition, low-cost carrier Southwest Airlines has also agreed in principle for the coronavirus aid package.
Following the agreement, the carrier will receive the funding support necessary to protect the jobs of its more than 60,000 employees through at least 30 September.
Southwest Airlines is expecting more than $3.2bn in disbursements under the programme, consisting of more than $2.3bn in direct payroll support and a nearly $1bn unsecured term loan.
