Delta, United, Other Airlines Sign Federal Coronavirus Loan Agreement

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An Airbus SE A310-114 aircraft, operated by Delta Air Lines Inc., flies to San Diego International Airport (SAN) in San Diego, California, United States, Monday, April 27, 2020.Bing Guan | Bloomberg | Getty Images

Five other airlines have signed agreements with the Treasury for billions of federal loans to help deal with the coronavirus pandemic.Covid-19 devastated the demand for air travel and sent American carriers to their first losses in years.

Delta, United, JetBlue, Southwest and Alaska have signed letters of intent for the loans, the Treasury Department said on Tuesday. Last week, it announced that American, Frontier, Hawaiian, SkyWest and Spirit had also signed aid agreements. The CARES Act, a $ 2.2 trillion coronavirus rescue program adopted in March, has reserved $ 25 billion in loans to American airlines.

Airlines are facing peaks of coronavirus cases across the country as well as continued travel restrictions that will limit the demand for flights to Europe and other destinations.

United told reporters last week that demand had started to “level off” recently after a resurgence in early spring and summer.

“The major American airlines play a vital role in our economy and are essential for domestic and international travel and trade,” said the Department of the Treasury. “These airlines are among the companies most affected by the disruption of social and economic activity caused by the pandemic. ”

The Treasury Department did not disclose the conditions or the amount of the loans. Delta said in April that it was eligible for a $ 4.6 billion loan, while United in May said it could receive $ 4.5 billion.

The airlines have also started receiving $ 25 billion in federal wage subsidies that prohibit carriers from laying off or cutting employee wages until September 30. .

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