United Kingdom
United States
Asia Pacific
American Airlines bags another USD5.5 billion in federal loans
American Airlines announced it has secured a $5.5 billion federal loan ahead of a looming funding crisis for the industry.
The airline could take another $2 billion subject to another stimulus package being announced soon.
However, current funding to protect airline jobs runs out in just a few days with no new package agreed yet.
Airlines have until September 30 to take the U.S. Treasury loans, which are part of the CARES Act relief bill that was passed by Congress six months ago.
American secured more than it had previously been allocated as airlines including Delta Air Lines and Southwest Airlines said they will not need to take the loans.
AA has also secured private funding including a $1.2 billion debt offering with Goldman Sachs.
Under the terms of the federal loans, airlines have to agree to restrictions on executive pay and shareholder buybacks.
United Airlines will likely tap its allocation of $4.5 billion this week.
The loans are separate to the $25 billion provision under the CARES Act to fund payroll costs to protect thousands of airline jobs.
If no extension is announced at the last minute, the industry is warning of up to 40,000 job cuts.
However American Airlines CEO Doug Parker said at the weekend that he is confident Congress will finally reach an agreement to extend the Covid-19 stimulus package beyond 30 September.
Written by Ray Montgomery, US editor
TravelMole Editorial Team
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.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Boy falls to death on cruise ship
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel