Congress takes another run at airline bailout; fate unclear

House Democrats on Friday proposed a new $28.8 billion bailout for the airline industry after the carriers began furloughs of more than 32,000 workers to cut costs during a pandemic that has devastated air travel.

Speaker Nancy Pelosi urged the airlines to delay those furloughs while Congress tries to approve the money.

American Airlines repeated its previously stated position that it will reverse 19,000 job cuts if Congress and the White House agree on more payroll aid in the next few days, but stopped short of following Pelosi’s wishes.

United Airlines, which started to furlough 13,000 workers, will undo the furloughs “once Congress has passed legislation ... but they need to act quickly,” said spokesman Frank Benenati. Alaska Airlines, which furloughed about 530 workers, did not immediately comment.

The airlines and their unions are seeking more taxpayer money to prevent furloughs through next March. Congress approved $25 billion in payroll aid six months ago in hopes that the travel industry might be stronger by fall. The money and an accompanying ban on layoffs expired Thursday.

There is widespread support in Congress for giving the airlines another $25 billion, but the plan bogged down as congressional Democrats and the White House failed to agree on a larger pandemic-relief measure. Until now, lawmakers have avoided giving money to just one industry while others are struggling and laying off workers, including hotels, restaurants and retail stores.

On Friday, House Transportation Committee Chairman Peter DeFazio introduced a stand-alone measure to give up to $25.5 billion to passenger airlines, $3 billion to their contractors and $300 million to cargo airlines.

The money would be earmarked for wages and benefits through next March. Airlines would keep...