AMERICAN AND 4 OTHER AIRLINES REACH LOAN AGREEMENTS WITH US

Techlife NewsJuly 7, 2020

AMERICAN AND 4 OTHER AIRLINES REACH LOAN AGREEMENTS WITH US
American Airlines and four smaller carriers have reached agreement with the government for billions more in federal loans, a sign of the industry’s desperate fight to survive a downturn in air travel caused by the virus pandemic.
The Treasury Department said Thursday that it had signed letters of intent for new loans to American, Spirit Airlines, Frontier Airlines, Hawaiian Airlines, and SkyWest Airlines.

All the leading U.S. airlines had previously accepted a combination of grants and loans to help cover payroll costs through Sept. 30. These five are the first carriers to accept loans from a separate $25 billion kitty that Congress set aside under a $2.2 billion measure to help companies hurt by the pandemic.

American Airlines said it signed a term sheet with Treasury for a $4.75 billion loan, which would be in addition to $5.8 billion that Treasury has already agreed to extend to American.

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July 7, 2020