Delta Air Lines Pays $8.1 Million to Settle Lawsuit Alleging Misuse of PSP Funds
July 18, 2025 - The Payroll Support Program (PSP) – designed and championed by AFA and unions across the aviation industry – created a first-of-its-kind workers-first relief plan from the government with the strictest requirements and oversight by the Treasury. PSP continued paychecks for aviation workers while capping executive compensation during the COVID pandemic. It provided true oversight and accountability for airlines.
Earlier this week, Delta Air Lines agreed to pay an $8.1 million settlement to resolve allegations that it violated the agreements of the PSP by falsely certifying that it abided by the PSP compensation caps.
From AFA President Sara Nelson:
We applaud the whistleblowers who came forward to shine a light on this gross injustice and violation of a law that simply required Delta to use government relief funds to pay their workers and not their executives… Delta’s violation of the PSP by exceeding compensation caps for corporate officers simply shows once again why Delta workers are organizing – because they know without a union, there is no accountability, there is no voice for the workers, and the airline executives are driven first and foxremost to take profits for themselves and their investors at the expense of workers, passengers and our communities.
