CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines. On today’s show, CNBC.com’s Leslie Josephs lays out the stakes for the airline industry, which will run out of federal bailout funds at the end of the month. Plus, CNBC.com’s Annie Palmer breaks down Amazon’s disavowal of Echelon’s ‘Prime Bike.’
0:43 — Stocks finish higher, still on track for a losing week
1:03 — High stakes and a short timeline for airlines
4:29 — CNBC Soundcheck
8:18 — Amazon fitness fakeout
9:20 — Numbers Round…(read more)
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The coronavirus pandemic has wreaked havoc on the airline industry, leading to unprecedented financial strain and forcing many carriers to seek government assistance in the form of bailout funds. However, the latest development in this ongoing saga is a concerning one – the airlines have reportedly run out of bailout money just six days after it was distributed to them.
According to a report by CNBC After Hours, the $25 billion bailout that was allocated to passenger airlines as part of the CARES Act is now fully exhausted, leaving many carriers in a precarious financial position. This development spells trouble for the industry, as it raises questions about the future viability of these airlines and the potential impact on their employees and customers.
So, what happens next? With the bailout funds already depleted, airlines are left to fend for themselves in a market that has been severely disrupted by the pandemic. This could result in a number of consequences for the industry and the broader economy.
One possibility is that airlines may need to seek additional financial assistance from the government in order to stay afloat. The question remains whether Congress will approve further aid for the industry, especially as discussions on a new stimulus package continue to stall.
Another potential outcome is that airlines may need to resort to drastic measures in order to survive. This could include massive layoffs, further route reductions, and even the possibility of some carriers going out of business altogether. Such outcomes would have far-reaching implications, not just for the airlines and their employees, but also for the thousands of businesses and communities that rely on air travel for their livelihoods.
Furthermore, the depletion of bailout funds could also impact the traveling public. With airlines facing financial uncertainty, it’s possible that ticket prices could rise, flight options could decrease, and customer service may suffer as carriers struggle to maintain their operations. This could make it even more challenging for individuals and businesses to travel, further hindering economic recovery.
In light of these challenges, the industry will need to adapt and innovate in order to survive. Airlines will need to explore new revenue streams, cut costs, and find ways to instill confidence in travelers in order to bounce back from this crisis. Government intervention may also be necessary to provide the support needed to ensure the long-term viability of the airline industry.
The depletion of bailout funds for the airlines is a concerning development that underscores the gravity of the challenges facing the industry. The next steps will be critical in determining the future of air travel and the broader economic impact of the pandemic. As the situation continues to evolve, it’s clear that the path forward will require cooperation and ingenuity from all stakeholders involved.
Red…
This is red..
Senoir counter agents make $33.00 an hour! Thats more than a GM at mcdonalds. As a primary source i even seen supervisors purposely write awful schedules to guarantee the staff has opportunity for overtime. Our money should not go to pay a counter agent at american airlines $50 an hour to stand there and be rude to the public. Who cares if 75,000 airline employees lose their jobs there 14million american who have already been living through the pandemic without jobs. The airlines is the entire reason the pandemic has spread as fast as it did. Do not use our money to pay the senior flight attendants $99.00 annhour because they dont want to retire and the union protects their ridiculous salary. The entire airline can rehire and train new employees at a standard rate of $15.00 an hour. The payroll system is horrendous and the airlines are destined to fail with or without bail just based on that alone. The unions coleect $14 a minth from employee the protect their salary. Need i say more?
Safe and sound
evey man for himself
too bad
Hahae so good
NO MORE BAILOUTS!
Biden-Harris 2020!!!
Let them die.
Well they got their bailouts, too friggin bad that no one can afford to fly much less pay rent, mortgage, and utilities thank you government
Well they got their bailouts, too friggin bad that no one can afford to fly much less pay rent, mortgage, and utilities thank you government
Corporate socialism is wrong! Let them fail.
They need to fund the studies to produce a more accurate quick covid test so its not such a hassle to fly internationally. Abott tet has 90+% false positive
The Airlines should sell their over exaggerated stock prices resulted from stock buybacks. And what the hell did the airlines do with the last bailout stimulus? Bought back more stocks?
The airline CEO pay ranges fro $8,000,000 to over $15,000,000
Not a penny in bailout money as long as these fat cats are making this kind of money.
Forbes article on CEO pay during the pandemic: https://www.forbes.com/sites/jackkelly/2020/03/11/airline-ceos-take-pay-cuts-as-people-avoid-flying-due-to-covid-19/#eca0a182ad4e
When your family member is gravely I’ll and it takes u a week to not be able to see them in time , then you would wish the airlines were operational.
I am sick of this garbage they don’t give us anything when they make money. Those pigs charged me $200 for moving my return date from Minnesota to LA by a couple weeks as my brother was dying, it was a month in advance so they didn’t loose any money from an unused seat. Hate these people the government is paid off by them with lobbying firms.
Printer go Brrrrrrrrrrrrrrrrrrrr……
Chamath was right. let them fail!
No airline bailouts. Do enhanced unemployment to protect workers across all industries. Airlines, like all industries must be allowed to expand and contract with rising and falling demand. If there are 6 airlines and half of demand disappears, 3 go bankrupt and 3 survive and continue to thrive. When demand returns, new investors capitalize operations and bankrupt airlines re enter the market.
They are threatening to lay off 50,000 people. If they average 100,000 a year salary, you can pay them all thier full salary for 5 billion. They already got 25 billion, now they want 25 billion more.
This isn't about protecting employees, it is about protecting airline investors. Investors are entitled to gains bc they take on risk. If the taxpayers protect investors from downside, investing becomes risk free and you end up with a rigged system.
Why should Americans bail out the airline indusry? Free market, open competition and capitalism should drive the market, not socialism
Build other transportation like super speed train air line are not profitable business.
isnt risk part of doing business?
No way. You shoulda saved for a rainy day.
STOP LYING ABOUT AIRLINES… PEOPLE DONT LOSE JOBS, SHAREHOLDERS RESTRUCTURE DEBT YOU MORONS!!! STOP HANDING THEM TAXPAYER MONEY.
the 20 senators lead by Ted Cruz and Rand Paul who think they are saving the future are actually killing off capitalism by letting everything just crash. and it will crash. ted cruz wants to be a constitutionalist. let him and his cronies go back to horse and buggies of 1777 then. because they are holding recovery hostage. Pelosi is stubborn also in negotiations of stimulus.
Canada has been doing $1000 every two weeks since the start of the pandemic. This has gone a long way in keeping the economy functioning and taking care of those who are most in need.
this video only showed up in my feed 6 days later
What gives the airlines and their employees the right to keep their companies and employee level the same regardless of demand?…. On the taxpayers dime?
No fossil fuel no airlines no bailout
Letting 80% of small businesses die like this is crazy!
National Ice Ball League Sports Coin
Turn them into banks and they'd get all the money they ever needed.
People are realizing air travel is bad for the planet and stuff to do near home
Maybe some of the corrupt over paid airline executives should have taken a pay cut.
If we don't have airlines then we wont have near as many people bringing in more viruses .
Congress gave them billions but gave us a few hundreds an airline's complaining.
Anyone else freaking out over what could happen in Thanksgiving?? No flights is bad for business. Too many flights is more contagion JUST before winter :/
What does the government have to bailout ceo airline's, that's what buying airline tickets is for, so what happens when Christian Churches close there door's bcuz of the Corona virus has people worried but airline ceos are asking the government for bailout money hmm
Let the airlines fail. It is not a public good.
Money well spent on those airlines
Let Trump dig his own grave and crash the airlines = MASS UNEMPLOYMENT 4 TRUMP SUPPORTERS! Make America an 3rd World Country wearing 1st World Clothes in 2020!
Good news, these giant airlines must meet their faith just like all privately owned business. Image the CEOs and their top employees still dreaming and living with full paychecks, salaries and bonuses while other small businesses have to bite the bullets.
Well this was a great report until the push to continue the Covid-19 fear mongering. That part really has to stop. How about re-opening our economy and getting people back to work. And definitely none of this crazy push for an mRNA / DNA altering forced vaccine in 6 – 9 months just to make Big Pharma even richer!
Mark Cuban? The Atlas Shrugged megafan? Advocating for UBI? Wow…2020 is weird.
What a joke…I bet all the CEO's and owners still paying themselves millions of $$. Get get a damn job at McDonald's…we had too