Republican senators back extending US$25 billion payroll aid for US airlines; shares jump

A group of Senate Republicans on Wednesday backed extending a US$25b payroll assistance program for US airlines after warnings that carriers may be forced to cut tens of thousands of jobs without government action. Airline stocks moved sharply higher on the news. Shares of American Airlines were up 8.9% in afternoon trading while shares of United rose 6.3%. The letter, spearheaded by Senator Cory Gardner and addressed to Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer and copied to Treasury Secretary Steve Mnuchin, was the first public disclosure of significant support in the Republican-led Senate for additional emergency funding for US airlines. Senators Marco Rubio, Roger Wicker, James Inhofe, James Risch, John Cornyn, Todd Young, Susan Collins, Martha McSally and others who signed the letter said they backed a new six-month extension of the payroll support program "to avoid furloughs and further support those workers." Cornyn's office released a copy of the letter and declined further comment. Airline officials and unions have been urging US lawmakers to extend new assistance in the face of the coronavirus epidemic's devastating impact on airline travel. "With air travel anticipated to remain low in the near future, Congress should also consider provisions to support and provide flexibility for businesses across the aviation industry similarly impacted, such as airport concessionaires and aviation manufacturing," the letter said.<br/>