With Treasury Department, Delta, Southwest releasing money, airlines could increase coronavirus loans

An underground crew member flew from American Airlines planes parked at the gate on April 5, 2020, at the Ronald Reagan National Airport in Washington, D.C., at the time of the outbreak of coronavirus disease (COVD-19).

Joshua Roberts | Reuters

The Treasury Department said Tuesday that the airline could get a larger federal loan than previously expected after selecting some carriers by releasing more funds into the program.

Congress in March Passenger airlines were approved for a લો 25 billion federal loan to help weather the coronavirus epidemic, which has demanded air travel at about 30% of last year’s levels.

Despite the initial agreement, Southwest Airlines and Delta Air Lines have said they do not plan to take out loans thanks to other sources of financial finance. For example, Delta said earlier this month that it plans to raise વેચા 5 billion from debt sales, backed by its Sky Miles frequent flyer program, to ze 1.5 billion.

The airline has until Wednesday to decide whether to take out a federal loan.

The Treasury Department said seven airlines – Alaska, American, Frontier, JetBlue, Hawaiian, Skywest and United – are planning to take out loans.

American said last week that it had received 5 5.5 billion from the program, which was expected to receive. 75 billion. The Fort Worth-based carrier said it expects to have ઉપલબ્ધ 7.5 billion available, the maximum amount for a single carrier.

U.S. Passenger airlines have also received a share of the 25 25 billion payroll subsidy from the government, which is largely subsidized. This fund car. Up to 1 carrier is banned from cutting jobs, but in just a few hours, airlines, mostly American and United, plan to cut more than 30,000 jobs.

Airlines and their labor unions are urging Congress for an additional 25 25 billion that will save jobs in the sector by March 31.