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Major Airlines Line up to Split $25 Billion in Payroll Aid

AP Photo/Rick Bowmer, File

The Treasury Department has reached agreements in principle with the major U.S. airlines for federal aid to pay workers and keep them employed through September. The assistance will be a mix of cash and loans totaling $25 billion, and Treasury's terms would let the government take a small ownership stake in the leading airlines.

The carriers did not want to give up equity, but they had little leverage — their business has collapsed as the COVID-19 pandemic reduces air travel to a trickle. American and Delta will each get more than $5 billion. And they could apply for additional loans from a separate $25 billion pool.