American Airlines Boeing 787-8 Dreamliner with registration N818AL landing at Athens AIA LGAV / ATH International Airport in Greece during a sunny summer day.
Nicolas Economou | NurPhoto | fake pictures
Five airlines have reached agreements with the Treasury Department for portions of $ 25 billion in federal loans intended to soften the blow of the coronavirus pandemic in their businesses.
Privately owned American Airlines, Hawaiian Airlines, Sky West Airlines, Spirit Airlines and Frontier Airlines have signed letters of intent for the terms of the loan, the Treasury Department said Thursday.
Other airlines have said they hope to be eligible to receive billions in federal loans, but have not yet signed letters of intent, although talks continue, a Treasury Department spokeswoman said.
The US passenger airlines, which recorded their first losses in years due to the virus, were allowed to apply for portions of the $ 25 billion in federal loans, funds set aside under the CARES Act in March.
The Treasury Department did not disclose the amounts and terms of the loans, for which airlines were required to deposit capital, warrants, or senior debt to compensate taxpayers. But executives have been anticipating the amount they hope to receive.
American Airlines CEO Doug Parker told staff the airline expects to finalize the $ 4.75 billion loan in the third quarter. Last month, he told shareholders that the operator plans to use the cash flows from his AAdvantage frequent flyer credit card as collateral.
In the spring, US airlines began receiving portions of an additional $ 25 billion in aid securing jobs in the sector through September 30, a relief that airline labor unions want to extend until next March.
.
