U.S. Airlines strike a deal with Trump's administration for $25B aidPublished by Terence Mahier | Source
The majors U.S Airlines said they reached deals for $25 billion in payroll grants to help weather the coronavirus 💸
The deal requires airlines not to furlough or cut the pay rates of employees until Sept. 30 👏
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 🤔
Will this massive grant be enough to reassure investors?
The grants were part of the more than $2 trillion coronavirus relief package, the CARES Act, which was signed into law last month.
“This is an unprecedented accomplishment — 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.
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 💊
16-Apr 07:26 (Eastern Time)
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