United Airlines Expects to Receive $5.0 Billion Through Payroll Support Program

posted on 16th April 2020 by Eddie Saunders
United Airlines Expects to Receive $5.0 Billion Through Payroll Support Program

United Airlines has confirmed that the airline expects to receive a total of approximately $5.0 billion from the federal government through the Payroll Support Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Of the $5.0 billion total the airline expects to receive, approximately $3.5 billion will be a direct grant and approximately $1.5 billion will be a low interest rate loan. These funds secured from the U.S. Treasury Department will be used to pay for the salaries and benefits of tens of thousands of United Airlines employees. In connection with the Payroll Support Program, the airline’s parent company also expects to issue warrants to purchase approximately 4.6 million shares of UAL common stock to the federal government.

We thank Congress and the Administration for quickly passing legislation to protect the paychecks of tens of thousands of United Airlines employees and look forward to completing the final agreements with the Treasury Department in the next few days,said United Airlines spokesperson Frank Benenati.

These funds will cover a portion of our pay and benefits costs through September 30, and we are thankful for the support provided to our employees and their families by the CARES Act. This financial support is critical to our people, who are ensuring air service to communities throughout the country and supporting the shipment of much-needed medical supplies and travel of health care professionals around the globe.”