US airlines reject lawmakers' request to refrain from share buybacks

A trade group representing major US airlines rebuffed a request by 70 US lawmakers to voluntarily extend a expired prohibition on stock buybacks that was a condition of US government COVID-19 payroll assistance. Representative Peter DeFazio, a Democrat who chairs the House Transportation and Infrastructure Committee, led a group of 70 lawmakers last week urging airlines to "refrain from initiating stock buybacks ... at least until air carriers are able to publish and fulfill schedules that meet demand; staff flights and key personnel positions appropriately; and return service to every community." Congress approved $54b in three rounds covering much of US airline payroll costs for 18 months through the end of September 2021. The ban on stock buybacks expired on Friday. DeFazio's letter, which was first reported by Reuters, was also signed by Democratic representatives including aviation subcommittee chair Rick Larsen, Alexandria Ocasio-Cortez, David Cicilline, Eleanor Holmes Norton, Jerrold Nadler, Carolyn Maloney, Rosa DeLauro and Debbie Dingell. Aviation unions launched a campaign in August to pressure airlines against stock buybacks. It came as major carriers are negotiating new contracts with pilots, who are seeking higher pay and improvements in schedules. Airlines for America told lawmakers in a previously unreported letter dated Friday seen by Reuters that "airlines willingly agreed to the intentionally temporary restrictions of the (payroll support program) to protect jobs and preserve their workforces amid the unprecedented global health crisis."<br/>