I disagree. If a business is losing money already, the government should not steal their product and tell them they can 'just write it off'. That doesn't do anything for the airlines to compensate them for the theft.
Even if the airlines were making money, the government should not be permitted to steal their product.

If the government wants to meddle in the airline security business, it should be required to pay cash for those seats it appropriates. And I definitely do not want my tax dollars spent on premium class seats for any travelers.