American Airways stated Friday that it acquired a $5.5 billion loan from the U.S. Treasury and will stand up to $2 billion extra in October relying on how the Treasury allocates additional funds underneath a $25 billion loan bundle for airways.
American Airways CEO Doug Parker joins airline executives, union heads and political leaders to … [+] name on Congress to authorize further loans at a information convention exterior the U.S. Capitol on September 22, 2020.
American stated it has already withdrawn $550 million of the loan, bringing its debt to $42 billion.
Its stock elevated 2.8% in post-market buying and selling following the announcement.
American was initially allotted $4.75 billion, however carriers together with Delta and Southwest Airways stated they don’t intend to take their share.
It’s doable different airways will decline their share, which might be distributed to different airways, as they’ve till Sept. 30 to resolve.
Airways acquired a separate $25 billion in March underneath the CARES Act, primarily as grants to keep away from layoffs and furloughs by way of the tip of this month.