Jamie Baker, in a research note for J.P. Morgan Chase, points out that if airlines get another ‘payroll support’ bailout they’d have to spend some of that money on extra payroll. In other words it isn’t all money straight into the kitty.
But will it happen? Baker says a new round of subsidies will happen (“We believe PSP 2.0 is a question of when, not if”). And then expect airlines to come back again for a third round.