The US has agreed a roughly $25bn (£19.8bn) rescue package for 10 of the country’s biggest airlines as travel plunges due to the coronavirus.
American Airlines, United, Delta and Southwest are among the recipients.
The money is to be used for payroll and will be provided through a combination of low-cost loans and direct grants.
Congress had planned for the aid as part of its roughly $2tn emergency relief bill last month but airlines had been negotiating the deal.
Under terms outlined by the US Treasury Department last week, major airlines were expected to repay about 30% of the payroll funds they receive.
Congress had also included conditions when it crafted the emergency aid law, such as prohibitions against involuntary furloughs and bars on reducing worker pay and benefits until the end of September.
The terms also limit share repurchases until the end of September 2021 and executive pay until the end of March 2022.
US Treasury Secretary Steven Mnuchin on Tuesday said the airline deal would “support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers”.
“We look forward to working with the airlines to finalise the necessary agreements and disburse funds as quickly as possible.”
Confirmation that the airlines would use the payroll bailout lifted industry shares in after-hours trading, sending American Airlines up more than 8% and United Airlines up more than 7%.
American Airlines boss Doug Parker said his company expects to receive more than $10bn in support, including$5.8bn in payroll funds, of which it expects about $4.1bn is set to be a grant. The firm will also apply for a government loan through a different programme.
“The support our government has entrusted to us carries immense responsibility and an obligation that American Airlines is privileged to undertake,” American chief executive Doug Parker said.
Other companies set to receive aid include Southwest which said it would receive a total of $3.2bn, including $2.3bn in payroll support.