(Reuters) – A US House committee on Thursday approved a proposal to provide airlines with another $ 14 billion in wage assistance as part of a larger COVID-19 aid package operating through Congress.
It would be the third round of support for the pandemic-affected industry. American Airlines and United Airlines have warned of about 27,000 flights without an extension of the current package, which expires on April 1.
The House Financial Services Committee, with a 29-24 vote, approved $ 14 billion for airlines and $ 1 billion for contractors to cover salaries by September.
The funds will be included in the $ 1.9 trillion COVID-19 aid bill proposed by President Joe Biden, whose initial plan did not include new money for airlines. House Speaker Nancy Pelosi said on Thursday she expected lawmakers to finalize the bill based on the bill by the end of February.
American Airlines said in a statement after the committee’s vote that the payroll support program, which covers employee salaries and prohibits job cuts, “was a lifeline for our team members.”
US airlines are consuming millions of dollars every day as the pandemic crushes travel demand.
The Airline Pilots Association, the world’s largest pilot union, said the funds “will help prevent further financial devastation that would result in the aviation industry being forced to send tens of thousands of workers.”
Budget carriers Spirit Airlines, Allegiant Travel and Frontier Airlines, however, have said in recent weeks that they intend to resume piloting later this year.
Reuters first reported many details of plans to provide new assistance to US airlines, transit systems, airports and Amtrak passenger rail.
Reporting by Tracy Rucinski and David Shepardson; Editing by Leslie Adler