Airlines make severe cuts amid worries government bailout won't be enough

While U.S. airlines are on the cusp of securing the $50 billion in aid from the government, the money will not be enough to keep carriers from suffering major losses because passenger levels have plunged. As a result, airlines will be cutting costs even further. CNBC's Phil LeBeau outlines the long road ahead.

The White House and Senate leaders reached a deal early Wednesday on a massive $2 trillion relief bill — said to be the largest rescue package in American history — to combat the economic impact of the coronavirus outbreak.

As of Wednesday morning, though, the Senate was still drafting the final details of the text. A senior Democratic aide told CNBC that due to procedural reasons, including how long it is taking the Senate to send over a draft of the bill, it is unlikely the House will vote on it Wednesday. The House needs to pass the bill before it can reach President Donald Trump’s desk.

Efforts to pass the measure have taken on urgency as hospitals, companies, states and individuals have all pleaded for needed resources to battle the pandemic. Its impact has now reached into the Senate: Sen. Rand Paul, R-Ky., earlier this week announced he has tested positive for coronavirus.

“The Senate is going to stand together, act together and pass this historic relief package today,” Senate Majority Leader Mitch McConnell said Wednesday afternoon.

In announcing the deal early Wednesday morning, the Kentucky Republican called the proposal is effectively “a war-time level of investment in our nation.” He promised the bill would rush financial assistance to Americans through direct checks to households, enhanced unemployment insurance, hundreds of billions of dollars in emergency loans to small businesses, and more resources for hospitals and medical equipment.

The Senate has yet to release the final terms of the deal. An earlier draft seen Tuesday would provide cash payments of up to $1,200 for individuals, $2,400 for married couples and $500 per child, reduced if an individual makes more than $75,000 or a couple makes more than $150,000.

The draft language also stipulated a $350 billion fund for small businesses to mitigate layoffs and support payroll.

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[Seaneey]

This is like putting a scratch & sniff sticker on a bullet wound. Great waste of 50b

[maximusbrandon]

They need to let American Airlines go. They never learn. They always get greedy.

[amanandom]

Why give them money. Buy them or lay them to rest!

[charlech]

Why don't they just go work for Amazon?

[wigbertlui]

As a airline ceo, this guy didn't reserve cash instead keep paying huge dividend. This is business failure.... Why workers need to bail them out? This isn't the first time....

[jeffreysmith]

Why isn't there a ban on all non-essential flying?!

[hellbeckham]

Just let them defaults and merge. Why need to bailout?

[serverok]

Gov. just saved the Banks more than the Industry itself.

[williamhall]

Who, in hell's name, is going to fly on the MAX?

[almamatermit]

The CEO's and executives will be compensated $20M-$60 Million USD.
In 2008, when there was a bailout, bank CEO's and executives received $20Million-$75million USD.
CEO's and executives see money coming and they are very happy!

[sunnycheba]

Make everybody check bags bigger than a purse or small backpack. No more duffle bag carry ons.

[lorenzmuller]

Lufthansa is best in class, better than Delta.

[kornpop]

How high will airline tix prices skyrocket in a month?

[Lnknvy]

Isn't the 737 the one that's incredibly dangerous? Why are they manufacturing it again?

[stewartprofessionalservice]

Senate has passed a pork belly bill to be made into bacon by the US House ( the real government ) watch rich boys dance for that money until they get em some...yummy tax / mask. money for free, local suckers. Cause they are good guys. Lmao unemployment money, done for today thx...not gonna insure the stock market. nope gonna make you work harder and pay that stuff back in full, over the years Diamond Jim.