US Congress has approved the American Rescue Plan Act of 2021, which will provide additional Covid-19 relief to eligible airlines.
The fund is part of the $1.9tn stimulus bill passed by the Senate after a more than 24h voting session.
It is expected that the bill, which is yet to be signed into law, will allocate an additional $14bn for eligible airlines and $1bn for contractors to the air carriers.
The package is the third round of federal aid for the industry to prevent employers from furloughing or cutting workers’ pay rates.
Airlines receiving the package will not able to furlough or layoff employees, nor reduce salaries, through 30 September.
Representing 15,000 American Airlines pilots, the Allied Pilots Association (APA) welcomed the approval.
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By GlobalDataAPA president captain Eric Ferguson said: “Thanks to the American Rescue Plan Act of 2021, our airlines will be well-positioned to continue global vaccine distribution and drive economic recovery as the Covid-19 pandemic recedes. By investing in the airline industry’s future, Congress is making a vital investment in our nation’s future.
“We are grateful that our colleagues are no longer facing imminent furlough. More than anything, we want to do our part to help get America flying again.
“And to that end, to the members of the House of Representatives, the Senate, and to President Biden, we say a heartfelt ‘thank you’.”
Last month, American Airlines and United Airlines warned 13,000 employees of potential furloughs in April.
