‘We don’t want airlines going out of business:’ Trump says financial help on way as travel grinds to a halt
With the travel fallout from coronavirus worsening daily, talk in Washington seems to have shifted from a potential domestic travel ban to emergency federal aid for battered airlines.
“We don’t want airlines going out of business,” President Donald Trump said at a White House briefing Tuesday.
Treasury Secretary Steve Mnuchin said he has spoken with airline CEOs this week about what they need. The industry is seeking $50 billion in aid, according to the Associated Press.
“This is worse than 9/11 for the airline industry,” Mnuchin said, echoing comments from almost every airline executive this month.
The airline industry, Mnuchin said, has “almost ground to a halt.”
‘It has a 9/11-like feel’:Southwest CEO says bookings down precipitously from coronavirus concerns
The only help Mnuchin mentioned for the industry was loan guarantees, but they are also seeking federal grants among other measures.
It was only a few weeks ago that carriers were touting their unprecedented financial strength to withstand the crisis, with many boasting about the billions in cash they had on hand. But travel bookings have plunged rapidly, trip cancellations have surged and the drop-off is accelerating, they say.
Now they are bleeding cash and raising money, slashing flights and warning employees about potential pay cuts or layoffs. United alone said it expects sales to be $1.5 billion lower in March than a year ago.
Southwest Airlines CEO Gary Kelly said in a video to employees Monday: “We’re gathering up all the cash we can. …There is simply no way to know how long this crisis will last.”
President Trump said again Tuesday that domestic travel restrictions haven’t been ruled out but focused his airline industry comments on the forthcoming aid package and the Centers for Disease Control and Prevention’s new guidelines, out Monday, about avoiding unnecessary travel for the next two weeks.
