The mother of all bailouts boosts Boeing, airline shares  03/26/2020 16:13:00   Claudia Assis

Shares of U.S. airlines and of plane maker Boeing Co. rose on Thursday after the U.S. governments $2 trillion stimulus package cleared the Senate hurdle despite last-minute disagreements.

Boeing BA, +13.74% shares rose more than 15%, extending their rally to a fourth day and on the heels of a 25% gain on Wednesday.

The NYSE Arca Airline index XAL, +3.34% was 7% higher, compared with gains under 4% for the S&P 500 index. SPX, +6.24%

The mother of all bailouts sets aside about $88 billion in aid for the aviation sector, analyst Robert Stallard with Vertical Partners said in a note Thursday.

Theres about $42 billion in grants to airlines and airports and air cargo operators aimed at support workers. Loan and loan guarantees making up the rest, including $17 billion for businesses related to national security.

Related: Airlines move to cut capacity and rein in costs as coronavirus effect intensifies

The situation for the U.S. airlines remains pretty dire, Stallard said.

In the aftermath of the Sept. 11, 2001, attacks, Congress passed a $15 billion bailout package to airlines.

See also:Senate approves $2 trillion coronavirus-aid bill, sending measure to House for vote

Virtually all airlines have cut down on capacity, instituted hiring freezes and cost-cutting measures, and had said they wouldnt be able to survive the year without help.

Elsewhere in bailout land, Stallard said, industry group U.K. airlines is requesting government aid and a six-month suspension in air passenger duty, low-cost carrier Norwegian Air Shuttle ASA NWARF, -5.81% has given creditors a forbearance note, a required step before getting loan support from the Norwegian government, and Singapore Airlines has is on the verge of receiving a capital injection from the government.

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