The Treasury Department said Tuesday that it had completed loans for seven passenger airlines, drawing from the $25 billion set aside for the industry under the March stimulus law known as the CARES Act.
“The payroll support and loan programs created by the CARES Act have saved a large number of aviation industry jobs, and kept workers employed and connected to their health care, during an unprecedented time,” Treasury Secretary Steven T. Mnuchin said in a statement. “We are pleased to conclude loans that will support this critical industry while ensuring appropriate taxpayer compensation.”
In exchange for the loans, the airlines are subject to requirements like limiting executive compensation, refraining from stock buybacks and issuing warrants or equity to the federal government. The recipients are Alaska Airlines, American Airlines, Frontier Airlines, JetBlue Airways, Hawaiian Airlines, SkyWest Airlines and United Airlines.
American announced last week that it had completed a $5.5 billion loan from the Treasury, but expected that to rise to $7.5 billion after the agency reallocates funding set aside for other carriers, like Delta Air Lines and Southwest Airlines, that declined the loans. That amount, $7.5 billion, is the maximum any airline will receive, the Treasury said.