US airlines remain in 'dire straits,' need new government assistance: industry group

The head of a group representing major US passenger airlines and a senior union official made the case to lawmakers on Tuesday for a third round of federal government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90b in government assistance and low-cost loans, including two prior rounds of payroll assistance for US passenger airlines totaling $40b. The $1.9t COVID-19 relief package approved by the US House last week includes another $14 billion for passenger airlines to keep workers on payrolls for an additional six months. It awaits action by the US Senate. “We are still struggling and in dire straits,” Nick Calio, who heads Airlines for America, said in testimony before the House Transportation and Infrastructure’s aviation subcommittee. “We were hoping it would be better by now.” He warned that without the new round of assistance tens of thousands of aviation workers will “lose their jobs — or experience reductions to wages and benefits — effective April 1.” In 2020, US airline passenger traffic fell by 60% to 368m passengers, the lowest since 1984, and reported pre-tax losses of $46b. They continue to burn “an estimated $150m of cash every day,” Calio said.<br/>