Southwest Airlines plans to apply for stimulus grants

Southwest Airlines intends to apply for aid from the federal government for assistance during the coronavirus pandemic, which has restricted travel and beleaguered the airline industry.

Southwest CEO Gary Kelly announced the move through a video message on Thursday, Reuters first reported.

“We still don’t know the severity of the situation. We don’t know how long it will last, so we intend to apply for our portion of the government grants,” Kelly said in the message. 

He also announced that Southwest had secured $2.3 billion in loans, The Dallas Morning News reported.

The relief bill signed by President Trump last week included $25 billion in grants for U.S. airlines to cover payroll through Sept. 30. The deadline to apply for the grants, administered through the Treasury Department, is Friday at 5 p.m.

The bill’s language also prohibits airlines from furloughing workers or cutting benefits for the next six months. 

Other major U.S. airlines have indicated they will also apply for the grants and are pleading for more relief from the federal government, arguing that the stimulus package was not big enough. 

U.S. airlines have taken drastic steps to cut back on flights in recent weeks and cancellations are rapidly outpacing new bookings.

Democratic senators on Tuesday called on domestic airline carriers to reimburse Americans for canceled flights, demanding cash refunds be provided over travel vouchers.