Skip to content
January 31, 2023
  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Reddit
  • Telegram
  • TikTok
  • LinkedIn
  • Discord
Orinoco Tribune – News and opinion pieces about Venezuela and beyond

Orinoco Tribune – News and opinion pieces about Venezuela and beyond

From Venezuela and made by Venezuelan Chavistas

Primary Menu
  • News
  • Opinion
  • About us
    • About us
    • Who we are – Becoming a Volunteer
    • Editorial guidelines for contributors
    • Our Sources
      • Venezuelan Sources
      • International Sources
    • Contact us
  • Categories
    • Politics
    • Economy
    • Security and Defense
    • International
      • Africa
      • Asia
      • Europe
      • Oceania
      • US/Canada
    • Latin America and ALBA-TCP
      • South America
      • Central America and the Caribbean (+Mexico)
    • Ideology-Commune-Labor
    • Health-Education-Sport-Culture-Technology
    • Solidarity and Social Movements
    • OT Specials
  • Support Us
Light/Dark Button
YouTube Channel
  • Home
  • News
  • US Airlines Pushing for Massive Bailout Gave $45bn to Shareholders in Five Years
  • International
  • News

US Airlines Pushing for Massive Bailout Gave $45bn to Shareholders in Five Years

March 20, 2020

But airlines are now facing criticism for paying out billions to investors – mainly through share buybacks – rather than saving this money up.

 

The United States’ five largest airlines – which are pushing for a $50bn-plus bailout to help them survive the Covid-19 crisis – have handed out more than $45bn to shareholders and executives over the last five years, research by the Guardian has found.

The US government is currently considering a request from Airlines for America, a group that represents the nation’s major carriers, for a payout to help firms cope with the pandemic.

With travel bans in place across the globe, industry groups are warning that airlines could run out of money within months.

But airlines are now facing criticism for paying out billions to investors – mainly through share buybacks – rather than saving this money up.

RELATED CONTENT: US Army Invades Virus Plagued Europe

Delta, American Airlines, United, Southwest and Alaska have spent $44.9bn on share repurchases and dividends in the last five years, according to Guardian research. In addition, nearly $750m has been paid out to executives over the same time period.

According to separate data compiled by Bloomberg, these five airlines have spent 96% of their free cashflow on buying back their own shares over the last decade.

According to the Guardian’s data, from public filings made to the Securities and Exchange Commission, Delta spent $13.6bn on share buybacks and dividends between 2015 and 2019. The firm paid out a further $208m to executives between 2014 and 2018, according to data released in proxy statements sent to investors. Pay figures for 2019 should be released ahead of Delta’s 2020 annual meeting.

Over the same periods, American Airlines spent $12.6bn on dividends and buybacks, as well as $177m on executive pay. United spent $8.4bn on share buybacks, and paid executives $186m. Southwest has not yet released its dividend and buyback data for 2019, but spent $8.7bn between 2014 and 2018, and handed out $97m to executives in this period.

Alaska, the smallest of the five, spent $1.6bn on buybacks and dividends, in addition to $71m on executive pay.

RELATED CONTENT: Italy and UK Rely on Help From Cuba, China, Venezuela to Fight Coronavirus – as US Steps Up Brutal Sanctions

Sara Nelson, president of the Association of Flight Attendants, has demanded that any US government bailout package come with “significant conditions” that would not allow companies to “enrich shareholders or pad executive bonuses”.

She said: “We have told Congress that any stimulus funds for the aviation industry must come with strict rules. That includes requiring employers across aviation to maintain pay and benefits for every worker; no taxpayer money for CEO bonuses, stock buybacks or dividends; no breaking contracts through bankruptcy; and no federal funds for airlines that are fighting their workers’ efforts to join a union.”

Any airline collapses would imperil the jobs of an estimated 750,000 people who work in the industry.

According to figures provided to the Guardian by Challenger, Gray & Christmas, the five biggest airlines have cut more than 10,000 jobs between them in the past five years.

Since 2015, Delta has announced 4,325 job cuts, United 3,325, American 2,147, Alaska 170 and Southwest 118, according to the firm.

Senator Edward Markey, a Democratic member of the commerce, science and transportation committee, also called for “major strings” to be attached to any deal to help protect consumers, frontline workers and smaller industry firms, and to ensure carbon emissions are reduced in the future.

On Monday, Airlines for America made a proposal to the US government for a $50bn-plus bailout package – including direct grants, loans, and tax relief – to help the industry deal with coronavirus.

Over the weekend, the Centre for Aviation warned that most of the world’s airlines will be bankrupt by the end of May this year without help from governments and industry action.

Donald Trump said on Monday that the government had told airlines “we are going to help them”, adding: “We have to back the airlines.” However, it is currently unknown what kind of help will be offered.

Several airlines in the United Kingdom are also calling for an immediate emergency bailout, while firms in Australia have struck an agreement with their government.

A spokesperson for Airlines for America said operators in the US have invested 73% of their operating cashflow “back into the product” – including investments in new aircraft, facilities, grounding equipment and technologies – while reducing debts by $91bn. They added that airlines have invested “heavily in their employees”, with average pay increasing 41% between 2010 and 2018.

The spokesperson added that airlines’ coronavirus crisis is “getting worse each day” and that the US industry is currently expecting a “collective burn rate” of $10bn per month.

An American Airlines spokesman said the firm had spent more than $30bn on capital improvements – including $23bn on new aircraft – as well as $20bn on improving pay for staff since 2013, while keeping $7bn of total available liquidity.

William Turvill is a freelance journalist, based in Vancouver

 

Featured image:  The American check-in desk at Dallas-Forth Worth airport. The five airlines are pushing for a $50bn-plus bailout package to help them deal with the economic effects of the coronavirus. , Photograph: Tom Pennington/Getty Images

Source URL: Portside

 

Want More?

Don't want to be a victim of the Algorithm?

SIGN UP TO RECEIVE OUR WEEKLY NEWSLETTER WITH ALL YOU NEED TO KNOW ABOUT VENEZUELA

We don’t spam! Read our privacy policy for more info.

orinocotribune
Website | + posts
  • orinocotribune
    https://orinocotribune.com/author/orinocotribune/
    January 30, 2023
    Human Rights Expert Aldref de Zayas Demands End to Sanctions Against Venezuela
  • orinocotribune
    https://orinocotribune.com/author/orinocotribune/
    Eyewitness footage shows what is said to be the moment of an explosion at a military facility in Isfahan. Photo: screenshot/WANA/Reuters.
    January 30, 2023
    Russia Condemns Failed Israeli Drone Attack Against Military Complex in Iran
  • orinocotribune
    https://orinocotribune.com/author/orinocotribune/
    Alex Saab supporter holding a sign with an image of the Venezuelan diplomat and a caption that reads: "Freedom for Alex Saab. #FreeAlexSaab." Photo: Venezuela News/File photo.
    January 30, 2023
    Over 30 Spanish Organizations Express Solidarity with Diplomat Alex Saab (+Statement)
  • orinocotribune
    https://orinocotribune.com/author/orinocotribune/
    Peruvian police shooting at protesters in one of hundreds of rallies held across Peru demanding the end of the dictatorship imposed by the Congress since December 7. Photo: Antonio Melgarejo/EFE.
    January 30, 2023
    Peru: Congress Rejects Early Elections Proposal Amidst Protests and More Deaths
Tags: airlines bail the poeple not the corporations bailout capitalism coronavirus Trump US Imperialism

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Continue Reading

Previous Previous post:

“We Cannot Test. We Cannot Test”: As Coronavirus Cases in US Spike 40% in One Day, Medical Workers Plea for Key Supplies

Next Next post:

“I’m Looking to Get an AR-15”: Gun Shops are Busy as Coronavirus Spreads, Despite state-ordered shutdown

Subscribe to Our Weekly Newsletter

We keep your data private and share your data only with third parties that make this service possible. Read our Privacy Policy.

Check your inbox or spam folder to confirm your subscription.

NEWS: Most Viewed 72 Hours

Calendar

January 2023
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Dec    

Categories

OPINION: Most Viewed 72 hours

We are on Telegram


Receive our news directly in your cellphone or PC, join us on our TELEGRAM channel: https://t.me/OrinocoTribune1

 

Download TELEGRAM, click the link above and then press the JOIN button.

We are on Discord


Now we are also on Discord you will be able to follow our every move and interact with our team.

Join us by clicking here



All our work is free to use and licensed under a Creative Commons Attribution 4.0.

We are on Reddit

If you are more into REDDIT, join our Orinoco Tribune Community.

 

Just click below and then click JOIN
https://www.reddit.com/r/OrinocoTribune/

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Reddit
  • Telegram
  • TikTok
  • LinkedIn
  • Discord
Copyleft, No rights reserved.