The airline industry is asking the federal government for $50 billion in aid as companies cut flights and lay off employees.
The aid requested is an unprecedented amount for an industry that has been one of the worst hit since the outbreak of the coronavirus. Dozens of countries have enacted travel restrictions or bans, forcing airline companies to adapt and usually suspend flights for an indefinite amount of time.
Airlines for America, the leading airlines trade group in the United States, is asking the federal government for $50 billion in grants, loans, and tax relief, plus an additional $25 billion in the form of a suspension on excise taxes on tickets, fuel, and cargo until 2022.
“This is a today problem, not a tomorrow problem,” Airlines for America CEO Nicholas Calio said. “It requires urgent action.”
In addition to travel bans, individuals and businesses have significantly scaled back travel. Airlines have begun to cut flights that otherwise would have taken place with near-empty planes. On Friday, Delta Air Lines informed its employees that the company was cutting 40% of its flights because of a decrease in demand.
The International Air Transport Association estimated in February that the airline industry would lose about $30 billion in lost revenue over the global health crisis. The coronavirus has continued to spread, with few reports of countries slowing the disease.
