Treasury Department says major airlines agree in principle to a $25 billion bailout

The Treasury Department on Tuesday announced that several airlines have agreed in principle to participate in a $25 billion payroll support program.

Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines are all on board, The New York Times reports.

The program is part of the coronavirus relief package Congress passed in March, with the money used to pay employees. Under the agreement, the airlines will not be allowed to make pay cuts or any major staffing changes through September. The industry lobbying group Airlines for America said that as of April 9, U.S. airlines have grounded 2,200 planes and passenger volume is down 95 percent from this time in 2019.

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It took several weeks for the airlines and Trump administration officials to agree to the bailout's terms, and last week, the Treasury Department announced airlines that receive up to $100 million in funds will not have to give the government equity stakes or other compensation, the Times reports.

In a statement, Treasury Secretary Steven Mnuchin said the agreement would "support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers."