ResearchAndMarkets.com has announced the publication of US Airlines Agree Loan Terms With US Treasury Amidst COVID-19, a new article on the airline industry, the company said.
Some of the largest US air carriers have signaled their intention to apply for federal loans. Many airlines already received USD 25 billion in financial aid under the CARES Act which was passed in March and could be eligible for another USD 25 billion loan program.
Airlines that have signed letters of intent with the US Treasury include United Airlines, Alaska Airlines, Delta Airlines, JetBlue Airways, American Airlines, Frontier, Hawaiian Airlines, SkyWest, Spirit and Southwest Airlines. US air carriers have until September 30th to decide if they will take the loan.
Air travel had begun to increase in some US states as a result of economies reopening and travel restrictions being relaxed. However, a recent spike in COVID-19 cases in some states has lowered demand for air travel and led to the introduction of new restrictions. Several US states now require out of state visitors to quarantine for 14 days on arrival. Airlines who avail of loans under the CARES Act must provide compensation to taxpayers in the form of warrants or equity interests issued to the US Treasury as well as committing to limiting employee compensation and dividends.
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