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Airlines agree new federal loans for billions
American Airlines and four other carriers have sealed federal loans for billions of dollars to stay afloat.
They are the first to tentatively agree loans with the US government under a separate $25 billion kitty that Congress set aside to help the ailing airline industry.
The other airlines are Spirit Airlines, Frontier Airlines, Hawaiian and SkyWest Airlines.
It is separate from the grants and loans offered to cover payroll costs through September 30.
American Airlines agreed a $4.75 billion loan with the US Treasury, which is in addition to a previous $5.8 billion it secured.
"We have to complete some legal work to reach a definitive credit agreement, but we expect to finalize that loan during the third quarter," American CEO Doug Parker told workers in a memo.
No details have been disclosed for the other airlines but SkyWest said it is ‘evaluating our level of participation with the Treasury.’
Several airlines are expected to potentially cut thousands of jobs when the federal payroll protection loans run out at the end of September.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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