U.S. airports need $10B or more in additional government aid: group

U.S. airports collectively held $100 billion in debt at the end of 2018

WASHINGTON - U.S. airports will need at least another $10 billion in government assistance as they face mounting losses from the near-collapse of air travel due to the coronavirus pandemic, a major airport group told a U.S. Senate committee Wednesday.

Continue Reading Below

Todd Hauptli, who heads the American Association of Airport Executives, noted that Congress previously gave airports $10 billion in emergency aid. In addition to at least another $10 billion for passenger airports, "Congress must provide billions of dollars in financial support for other parts of the aviation ecosystem" and greater support for smaller general aviation airports and other airport partners, he said.

CORONAVIRUS FORCES AIRLINES TO CONSIDER SELLING MILES FOR CASH

"We're going to have to get past the sticker shock and get to yes," Hauptli said.

Separately, a major airline trade group said the industry is not seeking additional government assistance and airlines hope not to have to return to Congress seeking more money later this year.

U.S. airports collectively held $100 billion in debt at the end of 2018 and some previously warned they might not be able to make debt payments without the initial $10 billion.

U.S. passenger air travel is down 95 percent and airlines have canceled 80 percent or more of flights into June.

BIG 4 AIRLINES TAKE ON CORONAVIRUS WITH NEW SAFETY MEASURES

Congress has already approved more than $50 billion in emergency assistance for other parts of the U.S. transit network harmed by the travel decline, including $25 billion for mass transit agencies, $25 billion in cash grants for U.S. airlines, $1 billion for passenger railroad Amtrak and the $10 billion for airports.

Airlines are burning at least $10 billion a month, the head of a trade group representing American Airlines Group Inc, United Airlines, Southwest Airlines and others said.

TickerSecurityLastChangeChange %
AALAMERICAN AIRLINES GROUP INC.11.22+0.11+0.99%
UALUNITED AIRLINES HLDG.29.91+0.45+1.53%
LUVSOUTHWEST AIRLINES CO.34.48+0.86+2.56%

Nicholas Calio, president and chief executive of Airlines for America, told the panel that if the industry was forced to refund too many tickets it could lead to bankruptcies.

Senator Richard Blumenthal, a Democrat, criticized airlines for not disclosing the ability of consumers to get refunds for some flights and instead encouraging them to take credits.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

"You are screwing the very taxpayers whose money is going into your pocket," Blumenthal said. "You are killing the goose that lays the golden egg."

Calio said airlines do not want to return to Congress and ask for more money later this year.

CLICK HERE TO READ MORE ON FOX BUSINESS