U.S. Airlines strike a deal with Trump's administration for $25B aid
Published by Terence Mahier | Source

The majors U.S Airlines said they reached deals for $25 billion in payroll grants to help weather the coronavirus πŸ’Έ

The deal requires airlines not to furlough or cut the pay rates of employees until Sept. 30 πŸ‘
Delta Airlines said it also reached a deal for a 10-year $1.6 billion loan giving government warrants to acquire around 1% of the Delta stock.

Delta stock surged by 5% after the deal was announced. However, as quarantine measures are tightening, the prospect of commercial flight activity going back to normal seems to get further and further every day πŸ€”

Will this massive grant be enough to reassure investors?

Extra Insights

The grants were part of the more than $2 trillion coronavirus relief package, the CARES Act, which was signed into law last month.

β€œThis is an unprecedented accomplishment β€” a truly workers-first stimulus that keeps people connected to their jobs and provides stability and hope to millions of aviation workers" said the president of the Association of Flight Attendants ✈️

Delta Airlines has already lost 58% of its market value since January.

What Happened on the market eventually?

The massive payroll grants don't seem to be enough to convince investors.
Delta Airlines ended up in negative territory among fears that demand would take a lot of time to pick up. In other words, the worst-case scenario of full bankruptcy has been avoided but that doesn't mean Delta Airlines will thrive soon...

- Newspill Team πŸ’Š
16-Apr 07:26 (Eastern Time)

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