American Airlines | U.S. Payroll support of $9.5 Billion will keep the Airlines running!

American Airlines
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The United States has been losing its power across the globe due to the CoronaVirus pandemic. As the statistics mention up until today, on 29 April 2020, there are a total of 1.4 million confirmed cases in the country. Apart from this, over 58 thousand people have died of COVID-19 in the US. However, what’s also worth counting is the downgrading of American Airlines at a high rate of nearly 95%.

To begin with, in 2019, American Airlines Group Incorporation calculated its revenue to be 45.768 Billion US Dollars. But, from March to April 2020, the revenue has dropped at a very fast rate. In order to support and keep the most powerful airlines in the world running. The U.S government has finally decided to fund its payroll support with an additional 9.5 Billion Dollars. For what it’s worth, during this fight against the CoronaVirus pandemic. American Airlines have donated a lump sum amount to help the Red Cross in order to maintain a constant blood supply for the patients

In the meantime, the airlines seem to be losing out on paying its employees. Thus, the U.S. Department of Treasury’s U.S. Payroll support is made available to American Airlines in order to recover from such loss and keep running

COVID-19’s Impact on American Airlines

Without a doubt, the economy of America is downsloping amid CoronaVirus Pandemic. With a record of millions of people already out of job, those who have it are not willing to fly. Indeed, most of all the countries have temporarilybanned international flights. Thus, protected from bringing any more tourists to the country such as India. Not only this, but even U.S American Airlines also are not proceeding with any international flights, whether incoming or outgoing

A Airlines grant fund
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During all this chaos, American Airlines is not willing to recover its fixed cost including salaries of employees and benefits. According to this deal of financial support from the U.S. Department of the treasury, there are some keen conditions that the airlines must follow. Conditions such as the airlines cannot dismiss any employee from the job up until 30 Sept 2020. Apart from this, the incorporation also cannot buy back any of its shares/stock or pay a dividend or other benefits to its shareholders

Above all, the US Payroll support remains only valid for recovering low-interest loan repayments and compensating the staff through this period of the widespread virus

Donald Trump comments on the issue…

Seeking American Airlines and other airlines dropping funding by the hour, Donald Trump, the president of America has shown some concerns. Indeed, he also commented or requested U.S. citizens by saying the U.S. government could pre-buy airplane tickets at a steep discount of 50% or more for travel for the next four or five years. “You infuse them with some cash. And in the meantime, we’re flying the people of our country… a fraction of the cost.”

Donald Trump comments
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Will the grant help American Airlines to recover fully?

To begin with, it is very difficult to say that for how long, $9.5 Billion will keep the airlines alive and running. Although, it is noteworthy to say that the U.S Department of Treasury has not only funded American Airlines. But, also offered grants to the following:

  • United Airlines Holding Incorporation,
  • Southwest Airlines Corporation, and
  • Delta Airlines Inc.

Above all, the conditions associated with the grant fund will remain the same for all the four airlines up until 30 September 2020

Furthermore, the U.S Department of Treasury has also opened up about $4 Billion in payroll support. According to the resources, the department is discussing utilizing this fund. These funds will help cargo carriers and airport contractors. Further, compensate for what’s going around!


Although American Airlines are receiving all the support from the U.S. Government. Still, there is a very countable impossibility of the economy of the United States to survive. For those employees of private multinational companies which already have been dismissed from their job. Where their paycheck would come from?

For the most part, it is well-assumed from the American government to generate a solution for those employees too. Up until then, American Airlines will work toward assisting those US citizens who are stuck in other countries where complete lockdowns are held


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