U.S. Department of the Treasury

The Payroll Support Program extension (PSP2) under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law) provides payroll support to passenger air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits. A total of up to $15 billion is available for passenger air carriers and up to $1 billion is available for certain contractors. As specified in section 403 of the PSP Extension Law, the amount to be received by each passenger air carrier or contractor is based on its payroll. Funds received by these air carriers and contractors must exclusively be used for the continuation of payment of employee wages, salaries, and benefits. 

Passenger air carriers receiving payroll support of more than $100 million and eligible contractors receiving more than $37.5 million are required to provide financial instruments as appropriate compensation to the U.S. Government for the provision of the financial assistance.

The Treasury Department is committed to implementing PSP2 with transparency. Treasury is providing information on PSP2, including program participants and applicants, the amount of payroll support to the participants, and any financial instruments provided by the participants. This information will be periodically updated as Treasury receives and approves additional applications. 

Payroll Support Program Extension Payments (CSV)

Data current as of 07/27/2022

Passenger Carriers

Contractor

Other

1. In certain cases where multiple affiliated entities were approved as eligible recipients, only one affiliate or a parent company is listed.
2. The location provided is the address included by participants in their applications and may not include all locations in which a recipient operates.
3. Application Date: Date the PSP2 application was completed.
4. Agreement Date: Date the PSP2 agreement was fully executed. If no agreement date is listed, the applicant’s PSP2 application has not yet been approved.
5. The total payroll support under PSP2.
6. The note has a duration of 10 years. For passenger air carriers, when applicable, this is equal to 30 percent of the payroll support provided to the participant over $100 million. For contractors, when applicable, this is equal to 44 percent of the payroll support provided to the participant over $37.5 million. For passenger air carriers and contractors, the cash interest rate on the note is 1 percent per year in the first five years, and converts to the Secured Overnight Financing Rate plus 2 percent per year in the last five years. Cash interest on the notes is payable semiannually on March 31 and September 30 of each year beginning on March 31, 2021. For contractors, the note also includes a payment-in-kind interest rate of 3 percent per year in the first five years, with an increase of 1 percentage point per year in years six through ten.
7. Total Number of Warrants: The warrants provide Treasury with the right to purchase shares of common stock or receive a cash payment. The number of warrants required is equal to 10 percent of the principal amount of the note issued by the participant, divided by an exercise price. The exercise price is generally equal to the value of the shares as of market close on December 24, 2020. The warrants are exercisable for a five-year term.
8. Warrant Exercise Price: The strike price of the warrants.
9. Alaska Airlines, Inc., issued a note and warrants related to payroll support provided to both Alaska Airlines, Inc., and McGee Air Services, Inc. McGee Air Services, Inc., is an eligible contractor and a wholly owned subsidiary of Alaska Airlines, Inc.
10. Sky Chefs, Inc. and Lufthansa Technik Component Services LLC, which are affiliates of Deutsche Lufthansa AG, issued notes related to payroll support provided to Sky Chefs, Inc., Lufthansa Technik Component Services LLC, Hawker Pacific Aerospace, and Lufthansa Technik Puerto Rico, LLC.  Hawker Pacific Aerospace and Lufthansa Technik Puerto Rico, LLC are eligible contractors and wholly owned subsidiaries of Lufthansa Technik Components Services LLC.
11. The warrant exercise price for Frontier Airlines, Inc. was previously $442.69, based on a valuation in September of 2020.  The warrant exercise price was adjusted following the company’s initial public offering on April 1, 2021.