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Epidemics

Biden's $1.9 Trillion Pandemic Relief Package Offers Lifeline to Airlines and Transportation Industry

Strategic Insights

— 2 min read

The U.S. transportation industry, hard hit by the pandemic, would receive a significant boost under President Joe Biden's proposed $1.9 trillion pandemic relief package. The legislation would provide critical support to airlines, airports, and public transit agencies, helping to maintain jobs and keep workers on the payroll. Transportation officials say the package would extend payroll support for a third time, giving airlines and their contractors $15 billion to keep workers on the job through the end of September. The legislation would also provide $8 billion in support to U.S. airports and $30.5 billion in grants to help make up for sharp decreases in ridership and other expenses resulting from the pandemic.

Key Takeaways:

  • The proposed $1.9 trillion pandemic relief package would provide $15 billion in payroll support to airlines and their contractors, enabling them to avoid furloughing more than 27,000 workers.
  • The legislation would also provide $8 billion in support to U.S. airports and $30.5 billion in grants to help public transit agencies recover from the pandemic.
  • Amtrak would receive approximately $2 billion in support, while the Metropolitan Transportation Authority of New York was expected to receive more than $6 billion.
  • The aviation industry has seen significant losses, with U.S. airlines reporting about $46 billion in pretax losses in 2020, and passenger volumes remaining 58% below pre-pandemic levels.
  • Despite the challenges, there are glimmers of hope, with officials at the Transportation Security Administration reporting that more than 1.2 million people were screened at airport checkpoints on Sunday, the most since January 3.
  • The legislation includes the same prohibitions on executive compensation and stock buybacks as the previous package.

Statistics:

  • $1.9 trillion: the proposed pandemic relief package authorizes.
  • $15 billion: the amount provided in payroll support for airlines and their contractors.
  • $8 billion: the amount provided in support to U.S. airports.
  • $30.5 billion: the amount provided in grants to public transit agencies.
  • 27,000: the number of workers that would be furloughed if payroll support is not extended.
  • $46 billion: the pretax losses reported by U.S. airlines in 2020.
  • 58%: the drop in passenger volumes compared to pre-pandemic levels.
  • 1.2 million: the number of people screened at airport checkpoints on Sunday.
  • $6 billion: the amount expected to be received by the Metropolitan Transportation Authority of New York.

Sources:

  • "Biden's pandemic relief package would give airlines, airports, public transit a boost" by Lori Aratani, The Washington Post.
  • "Aviation industry seeks aid in Biden's pandemic relief package" by Justin George, The Washington Post.
  • "U.S. airlines report about $46 billion in pretax losses in 2020" by Airlines for America.
  • "International Air Transport Association revises outlook for airlines" by Alexandre de Juniac, IATA.

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