with doug parker, chairman and ceo of american airlines you do not want to miss this exclusive interview coming up today on "squawk alley" at 11:00 a.m. really what you want to focus on with doug parker is not only the near-term and making sure they have the liquidity in place and the fact they're going to borrow more he already said that but the question is where is the bottom when do they start to see some bookings whether it's in june, july do they have any indication when they expect that to happen right now, guys, there's very little in the airline industry at least domestically in terms of when things start to improve, at least a lettittle bit. >> phil, to clarify for viewers, the no layoff agreement takes us through the end of september is that correct? and the other thing is summer fares, which got ridiculously low, $90 round trip new york to orlando, i see some evidence that those fares are coming up for the coming months. >> it doesn't matter how low you

airlines to receive $5.8 billion you don't want to miss our interview with american ceo and chairman doug parker we'll talk about not only receiving this money but the question of when do they expect to see some sign that people will start to sign again do they have confidence we'll see it when p it gets to july, august, september. you don't want to miss that interview coming up. back to you. >>> before you go. two things i was trying to do some math on these warrants it appears to me, it is a bit of a figure leaf to the taxpayer, if you will. it is so small even if it were to double in value, it would be like 5% of

we'll talk to doug parker later this hour. let's get to phil lebeau >> good morning. we'll talk about the aid package and why airline stocks are indicating they'll open higher i have to show you the new numbers from the tsa we track this every day. they tell you here's how many people were screened in terms of passengers and crew members at all the airports in the u.s. they hit a new all-time low yesterday. 87,000 that's how many people were screened at all of the airports in the united states you have to wonder if it goes much lower than that 87,000 that's how much it was yesterday. i know you see 90,000 there. that was a couple days ago look at how the stocks are indicating they should be trading higher at the open in part because they have some certainty at least over the next couple of months when it comes to meeting their financial obligations, now that they have reached an agreement with the treasury department on these payroll grants we won't go down the road of all ten of these and how much they are getting from the treasury department we'll talk about the big

we're going to start with fill lebo and the ceo of american airlines, doug parker. good morning. >> good morning. let's bring in doug from the headquarters of american airlines in fort worth, texas. you reached an agreement in principle with the treasury department on the payroll grants for $5.8 billion how much will this tide you over to make sure that the payroll can be met, so to speak? >> it's great news for america, our customers and team, and the industry the last time i talked to you we were in the middle of negotiating this, and we went through some tough times in getting through it, but we're just elated to have that behind us it's incredibly important given where demand for air travel is right now and we're extremely pleased that the government has recognized the importance of the airline business and our retaining critical service and keeping our team employed. it's extremely important and great news. >> doug, you already said you plan to apply for a loan from the treasury department in the over $25 billion bucket that's been set aside for the airline indu

and doug parker is not going to call the bottom here, but he did give us some sense that there are some signs to be cautiously optimistic about when it comes to future bookings >> just in the last week, we started to see bookings outside of 90 days, starting to tick up a little bit again, those can be changed in the future, that doesn't seem to be the case. that seems to be a little bit of an indication that maybe our country is starting to get moving again we have our sales team that tells me we're being asked to work on conventions in the fourth quarter >> so a little bit of cautious optimism certainly, nobody in the airline industry is ready to say that they're out of the woods yet the airline stocks are mixed and remember, tyler, this is $25 billion from the grant program the other $25 billion in the federal aid package for airlines comes in the form of loans american will be applying for a loan from the treasury and other airlines, as well. look for that over the next couple of days >> i was going over some notes there, phil, and forgive me if you said it and i didn't hear it is pa

ed: doug parker will never live that down. no, we had a pretty hostile takeover battle.t an interesting story. we were bankrupt, we weren't worth anything at the time. usair came in and offered $10 billion to buy delta for a company that is not worth anything. so everyone assumed, well, that's going to be a foregone conclusion. the people of the company stood, and they said, it is not going to happen. we have a better idea, we have a better business plan. we are able to convince the creditors through the restructuring process to stay with delta, and as a result of that you see what we have been able to do. david: as part of that, what happened is, you said to the employees and your colleagues, we will give you 10% of the profits to the employees, is that more or less right? ed: when we went through the restructuring, people took a lot of pay cuts. benefit losses, a lot of change. and we made a commitment to the employees then at that point that once we became profitable, 15% of the profits would go back to the people, which we honor to this day. we still do. david: so ho

american you do not want to miss our exclusive interview at 11:00 this morning, we'll talk with doug parker, president and ceo of american airlines we are not only going to ask about the aid package and the $25 billion the airlines are receiving. we are also going to talk to them about the outlook for airlines that's the big question now. what happens as we move into a summer season where we still see passenger levels where they are right now. don't miss this. coming up at 11:00 a.m >> that's a good point we already know there is little to no clarity to any business out there. what have you been hearing from the industry and source there's about what a potential rebound could look like? what could we expect to see it happen >> it is pushed out further than believed and a lot thought we thought a lot of these could happen in the fall that's not going to be happening. most will say you'll see revenue down 25 to 30% in the first quarter. you are looking at a rebound of pre-covid-19 levels maybe premiddle of next year in terms of what they are seeing with bookings, they are not seeing it when y

question of the bailout already yesterday, fast forwarding to the fall, you guys had, of course, doug parker on yesterday. but you know, will there have to be another bailout for the airlines come the fall how quickly can things rebound when you have cut 90% of your flights? >> i have a group of young people -- i said to our mad money team yesterday, let's go to california. they looked at me like -- well, let's just go sit in the electric bleachers >> a line out of mun yeez was amazing. we expect to fly fewer people in the entire month of may than on a single day in may of 2019. david mentions the 90% cut to the schedule they're warning of possible job cuts cowen has a report out today where they don't see, in their words, a robust return to air travel for at least three to five years and now there's so many assumptions in there, too, jim if we got widescale vaccines in 18 months, you know, that model would like lee change dramatically, but that's what they have to go with for now >> i just want the tests you just have a test you go 15 minutes early. you get the test and if you have it, and

look, when we talked to doug parker last week, he indicated slight optimism, very slight he made it clearhings are terrible now he said, look, we actually are doing some work with potential business conventions in the fourth quarter does that mean it's business as usual? of course not. none of the airlines expect that the focus will be what happens after september 30th united has already come out and said, look, if we do not see an increase in demand whether it's on the leisure or business side, there will be the possibility of job cuts because they simply do not have the business that they need in order to justify the level of employment and remember, they have to keep those jobs in place through september 30th, not just united but all the airlines as part of the agreement for taking the payroll grants from the treasury department >> it's a huge story today for us, phil, amazing to see the shares down in the premarket along with oil on this historic day. take a quick break here and the opening bell on the other side of this monday ahead of a busy earnings week. don't go away. people know

amounts to 3% awarded to each person yesterday in an exclusive interview with american airlines ceo doug parkerked to him before they said they received or planned to receive $5.8 billion about the restrictions locked in place here's what he had to say. >> they're conditions we're happy to accept. if you find yourself in need of government assistance, it's fair to say until you have paid off the loans, for example, if you choose to take loans, that you don't have stock buy backs, we don't do dividends, that the money doesn't flow to your executives >> reporter: those are a lot of the questions put into the airline bailout. now the question comes for a company like boeing which has said to congress, look, we may need up to $60 billion not just for us but also for our suppliers and for the aviation industry, what will the final restrictions be there? keep in mind, boeing has not committed to whether or not it will be seeking a particular amount from the treasury department they may still end up doing all of this in the private market, guys i think these are the questions that people are focused o

airlines to receive $5.8 billion you don't want to miss our interview with american ceo and chairman doug parker we'll talk about not only receiving this money but the question of when do they expect to see some sign that people will start to sign again do they have confidence we'll see it when p it gets to july, august, september. you don't want to miss that interview coming up. back to you. >>> before you go. two things i was trying to do some math on these warrants it appears to me, it is a bit of a figure leaf to the taxpayer, if you will. it is so small even if it were to double in value, it would be like 5% of the grant money. am i wrong >> no. you are correct about that the treasury department's view that the taxpayer should get something. you didn't hear too much complaining from the airlines. they said we understand the government needs to feel that the taxpayer is receiving something. the bigger concern, we reported this back thursday and friday of last week, the fact that 30% of the money given to each airline will be in the form of a loan. these guys have taken out $32, $33 billion j