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.
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.
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.
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,