US airlines, Treasury Department reach agreements on billions in coronavirus aid

Wealth

A JetBlue Airways Corp. plane taxis next to American Airlines Group Inc., Delta Air Lines Inc., and Alaska Airlines Inc. aircraft at Reagan National Airport (DCA) in Arlington, Virginia, U.S., on Monday, April 6, 2020.

Andrew Harrer | Bloomberg | Getty Images

U.S. airlines and the Treasury Department have reached an agreement in principle on billions in government aid aimed at softening the blow from the coronavirus, sources told CNBC.

The agreement comes as the virus and harsh measures to stop it from spreading, such as stay-at-home orders, have roiled air travel demand. 

U.S. airlines including American, Delta, United, Southwest and others applied for portions of $25 billion in payroll grants that require airlines not to furlough or cut the pay rates of any employees through Sept. 30.

Airlines are expected to provide detail on aid later Tuesday, two of the people familiar with the discussions said.

This is breaking news. Check back for updates.

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