US airlines warn on travel recovery while awaiting fresh aid

Major US airlines warned Wednesday that travel demand will continue to languish until there is a widespread COVID-19 vaccine, while awaiting developments in Washington on additional federal aid. US airlines received $25b in payroll grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March and have been lobbying for a six-month extension to protect tens of thousands of jobs at risk when the first round expires this month. Union leaders met with senior congressional Democrats to discuss aid after a proposal from the Republican-led US Senate on Tuesday for additional coronavirus relief did not include new government assistance for US airlines or airports. Republicans and Democrats have been jockeying for months over the next phase of coronavirus aid. Officials expect discussions to accelerate in the coming weeks, though it was not clear whether an agreement would be reached before the first $25b runs out this month. The sector does not expect a meaningful recovery until there is a widely accepted COVID-19 treatment or vaccine, which could stimulate pent-up demand and the need for trained workers. American Airlines told an online conference it could apply for more Treasury loans if other airlines do not take their share of a separate $25b available under the CARES Act. Speaking at the same conference, Delta CFO Paul Jacobson warned that any coronavirus vaccine must be followed by broad vaccinations, a process he said could take between six and 12 months.<br/>