Airlines Got the Sweetest Coronavirus Bailout Around

The U.S. Treasury Department has asked more than 200 public companies that received almost $1 billion in loans under the Paycheck Protection Program to return the money, even if they technically qualify as small businesses. Treasury Secretary Steven Mnuchin has said the program wasn't intended for these companies because they have access to the capital markets.

Yet consider the federal aid to the airline industry. One day after receiving $5 billion in assistance from the Treasury, United Airlines sold $1 billion of common stock. Two days after receiving $5.4 billion in taxpayer funds, Delta said it was raising $3 billion by selling secured debt. It’s good that the airlines are fortifying their balance sheets; their businesses are likely to suffer for some time because of the pandemic. But these actions should raise questions about the terms of the aid.