$25B later... Back in April, airlines got $25B in bailouts from the US government so they could continue paying their hundreds of thousands of employees. Under the terms, airlines can't make any layoffs or job cuts until September 30th. The hope was that the funds would be enough to tide airlines over until October, when travel was expected to pick up again. Reality check: it's still bad.
Honestly just sad... With depressed travel demand and high expenses, US airlines are burning through their bailout bucks. Now tens of thousands of employees are fearfully waiting for October 1st, when the ban on job cuts expires:
Was the bailout a waste?... The government spent $25B of taxpayers' money to save US jobs, but it looks like jobs are likely to be cut anyway. It's even possible that airlines will still go bankrupt. Buuut: Had the government not bailed out the airlines, layoffs likely would have come much earlier. That would've meant government $$$ going to workers through unemployment checks. With the bailout, the gov gets to continue collecting income tax from those employees — at least until Sep 30th. For the bailout to have a happy ending, we need to slow COVID (fast).