(Spencer Platt/Getty Images)

The Treasury Department has finalized terms to send billions in grants to major airlines hammered by the coronavirus pandemic. Following an extensive lobbying campaign, airlines were one of the few industries to receive carved-out funding in the bipartisan $2.2 trillion stimulus bill.

Airlines for America, the top trade group for U.S. airlines, spent $1.9 million lobbying Congress and the federal government during the first three months of 2020, according to new lobbying filings. That’s its highest ever first-quarter mark. The trade group cheered the stimulus package that will award $25 billion to airlines to pay their workers.

Delta Air Lines spent $1.2 million, it’s highest first-quarter spending since the 2008 financial crisis. United Airlines ($1.3 million) and American Airlines ($1.4 million) spent around their usual mark. Southwest Airlines increased its lobbying spending slightly to $420,000 over $310,000 this time last year.

Those airlines have secured agreements with the Treasury Department to receive billions in government grants. Delta and United said earlier this month they would each receive about $4 billion in direct grants. Under the agreement, airlines cannot furlough workers until Sept. 30 and must pay back 30 percent of the money. The U.S. government will take a financial stake in large airlines that take grant money.

The Treasury Department said Monday it has already handed out $2.9 billion to airlines and is working to secure deals with other airlines. Those include JetBlue Airways, which upped its lobbying spending to $470,000, and Alaska Airlines, which spent $390,000 in the first quarter. Hawaiian Airlines, which reported lobbying for the first time since 2010 and spent $240,000, is also working to secure grants.

Help us keep government accountable by making a donation today.

Labor unions representing airline workers mostly cheered the stimulus package for protecting jobs. However they bemoaned the fact that major U.S. airlines spent around 96 percent of their cash flow buying back their own shares over the last decade, leaving them with little money in the bank when COVID-19 brought travel to a halt. Airlines that take government grants cannot buy back their stock until late 2021. They must also limit how much they pay executives.

Airports are also receiving millions in government aid. The American Association of Airport Executives and Airports Council International spent $886,000 and $630,000 respectively in the first quarter as they lobbied Congress to include airport aid in the stimulus package. The funding formula reportedly disproportionately helps smaller airports that employ few workers compared to major hubs.

Airlines and airports that want to receive government aid must keep their service at normal levels. That means airlines are flying empty planes to satisfy government requirements. The Transportation Department has denied requests from smaller airlines to suspend some of their flights that draw few passengers. Smaller carriers, which spent little on lobbying and have significantly less influence with lawmakers, say the stimulus rules weren’t crafted with them in mind.

Air travel has dropped by around 95 percent amid the coronavirus pandemic. A new report by Democratic senators found that some airlines are not giving out cash refunds to customers who cancel their flights, instead offering vouchers.



For permission to reprint for commercial uses, such as textbooks, contact the Center: Feel free to distribute or cite this material, but please credit the Center for Responsive Politics.For permission to reprint for commercial uses, such as textbooks, contact the Center: [email protected]





Support Accountability Journalism At OpenSecrets.org we offer in-depth, money-in-politics stories in the public interest. Whether you’re reading about 2020 presidential fundraising, conflicts of interest or “dark money” influence, we produce this content with a small, but dedicated team. Every donation we receive from users like you goes directly into promoting high-quality data analysis and investigative journalism that you can trust.Please support our work and keep this resource free. Thank you. Support OpenSecrets ➜