Delta Air Lines, United Airlines, Alaska Airlines, JetBlue Airways, and Southwest Airlines are the latest carriers to sign letters of intent for US government loans.
Treasury did not specify the amount each airline was receiving, saying only that it required borrowers to provide warrants, which are financial instruments that can be converted into shares, or other forms of debt or equity.
Borrowers must also comply with conditions like maintaining employment and not paying employees above set levels, along with temporarily suspending the payment of dividends and share buybacks. The loans are on top of another $25-billion package paid out by the government in exchange for a commitment by the airlines not to cut jobs until after September 30.
American Airlines said last week it had signed a letter of intent with the Treasury for a $4.75-billion loan, but company executives warned in a letter that they expected to have 20,000 more employees than necessary by the fall.
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