The Treasury Department on Tuesday said airlines could receive larger federal loans than previously expected after some carriers opted out, freeing up more funds in the program.
Congress in March approved $25 billion in federal loans for U.S. passenger airlines to help them weather the coronavirus pandemic, which has kept air travel demand at roughly 30% of last year’s levels.
Despite preliminary agreements, Southwest Airlines and Delta Air Lines have said they ultimately don’t plan to pursue the loans, thanks to other sources of financing. Delta, for example, earlier this month said it was able to upsize a debt sale backed by its SkyMiles frequent flyer program to $9 billion from the $6.5 billion it planned. Read more…..
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Southwest Airlines CEO Gary Kelly told CNBC’s “Squawk on the Street” Wednesday that he’s hopeful lawmakers can come to an agreement to provide the airline sector more federal aid during the coronavirus pandemic.