US Airlines Reach Agreements with Treasury for Federal Loans

Back in March when the CARES Act was put in place, the federal government earmarked approximately $25 billion of taxpayer-funded loans for the airline industry. Now however, five major airlines in the US have finally reached deals with the Treasury Department, and will soon have their pockets overflowing with cash once again.

According to a Treasury Department spokesperson, Hawaiian Airlines, Spirit Airlines, American Airlines, Sky West Airlines, as well as privately-owned Frontier Airlines have all finalized letters of intent for a portion of the $25 billion. Although the Treasury Department did not reveal specific details of the loans, it is assumed that the eligible US airlines will have to provide some form of compensation for taxpayers, either in the form of warrants, senior debt, or equity.

However, there is also an additional $25 billion worth of aid that was made available by the Treasury Department aimed at securing sector jobs during the coronavirus-induced economic downturn. US airlines have been receiving this aid since spring, and in return they must secure their employee’s wages until September 30. Nonetheless, airline labour unions are asking lawmakers to extend the aid to an additional $32 billion to last until the end of March, citing the continued lack of demand for air travel.

Source: IATA

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Justin Trudeau Unveils Additional COVID-19 Commercial Rent Relief, Expanded Forgivable Loan Program

Canada’s federal government today unveiled several COVID-19 stimulus measures to help further the economic recovery...

Friday, October 9, 2020, 03:25:59 PM

Nothing Complicated, Everyone Just Believes It’s The End Of The World

That sure didn’t take long! We wrote on Monday that the gold chart had broken...

Wednesday, March 25, 2020, 08:38:39 AM

Republicans Reveal Details of $1 Trillion Second Coronavirus Relief Package, Americans Slated to Receive Another $1,200 Payment

After various struggles that delayed the the unveiling of the much anticipated second coronavirus relief...

Monday, July 27, 2020, 02:58:32 PM

Trudeau Government Mulls Including New Social Programs In Upcoming Fiscal Plan

It appears that the Liberal government’s fiscal plan will soon be expanded to include permanent...

Friday, October 30, 2020, 12:31:00 PM

Biden’s ‘Build Back Better’ Infrastructure Plan to Cost Upwards of $3 Trillion

With the latest $1.9 trillion stimulus bill still hot off the printing press, an increasing...

Monday, March 22, 2021, 04:28:10 PM