US carriers outline federal loan amounts

Six out of seven major US carriers have detailed the term loans they each obtained from the US Treasury Department under the federal CARES Act framework. They collectively total in excess of USD14.1 billion.  Frontier Airlines (F9, Denver Int’l) is also part of the cohort but is not stock-listed and did not reveal the size of the loan which it has agreed on and already borrowed. The loans are available to airlines until March 26, 2021. The share purchase warrants issued to the government by the airlines as part of their respective agreements are exercisable within five years from the date of their issuance and in proportion to the value of loans actually taken by the respective carriers. The US Treasury said recently that it would allocate additional funds to airlines which agreed to term loans after Delta Air Lines (DL, Atlanta Hartsfield Jackson) and Southwest Airlines (WN, Dallas Love Field), which signed tentative agreements, said that they would not, after all, borrow money from the government and would seek funding elsewhere. The total sum allocated to supporting US passenger airlines is USD25 billion.