The US Department of the Treasury has reached agreements with each of American Airlines, Spirit Airlines, Frontier Airlines, SkyWest Airlines, and Hawaiian Airlines over the extension of federal loans covering losses they have each sustained as a result of the COVID-19 pandemic.
Each of the five major airlines signed a Letter of Intent with the Treasury, although the amounts of the loans, either aggregate or individual, were not disclosed. While the Treasury said that the airlines were required to "provide warrants, equity interests, or senior debt instruments as appropriate taxpayer compensation", the details of each's pledged collateral were also not disclosed.
None of the four stock-market listed airlines (Frontier Airlines is privately held) revealed any further details in any of their respective SEC filings.
"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation. Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible," Secretary of the Treasury Steve Mnuchin said.
