- Airline stocks eased after Pelosi signaled she wouldn't support more aid for airlines without a broader coronavirus relief package for the country.
- Carriers last week started furloughing more than 30,000 workers, but said they would reverse course of lawmakers approved billions more in aid.
Airline stocks fell Thursday after House Speaker Nancy Pelosi said there won't be a standalone bill for additional aid for carriers without a larger coronavirus stimulus package.
Pelosi's comments come two days after President Donald Trump halted talks for a national coronavirus package until after the election, but urged additional aid for the ailing airline sector.
Airlines last week started furloughing more than 33,000 workers. Carriers agreed not to cut any workers until Oct. 1 under the terms of $25 billion in support Congress approved in the $2.2 trillion CARES Act in March.
The funds were meant to help airlines manage a dip in demand but a significant rebound in air travel demand has failed to materialize. Airlines and labor unions have been urging lawmakers and the Trump administration to approve $25 billion more to preserve jobs through March 2021.
The proposal had won bipartisan support but lawmakers and the Trump administration had repeatedly failed to reach deals on further coronavirus aid.
Airline shares were up earlier in the day on hopes that Congress could advance stand-alone aid for the sector.
American Airlines' shares were down 1.3% and United Airlines' were off 0.3%. Southwest Airlines shares were down 0.5% while Delta Air Lines' were off the day's highs, up 0.2%.
This is breaking news. Check back for updates.
Source: Read Full Article