Cares Act: Travel Weekly Last Minute Loans
The Treasury Department has signed Cares Act loans with seven US airlines.
The announcement came on Tuesday when the $ 25 billion Cares Act Payroll Support Program for airlines expires at midnight.
Alaska, American, Frontier, JetBlue, Hawaiian, SkyWest and United all have loan agreements with the Treasury Department.
Americans will borrow up to $ 5.47 billion and Hawaiians can borrow up to $ 420 million. The Treasury Department and the airlines have reported. The department has not yet released loan terms for the five other airlines, though SkyWest reported in a regulatory filing that it could borrow up to $ 573 million.
Among the major U.S. airlines, Southwest and Delta have both announced they will not take out Cares Act loans and instead rely on private funding arrangements for the liquidity they need to wade through the Covid-19 crisis. As a result, the Treasury Department said other airlines will be eligible for a larger portion of the $ 25 billion loan program than originally planned.
American, for example, previously expected to have access to a $ 4.75 billion Treasury loan instead of the nearly $ 5.5 billion it took out last week.
Airlines and aviation unions have been loudly calling for a six-month payroll program to be extended by $ 25 billion. Her pleadings have garnered the support of both parties and the White House, but the issue is embroiled in the broader Congressional dispute over a new Covid-19 bailout package.
Some airlines, particularly United and American, have announced that thousands of employees will be on leave starting Thursday.
Treasury Secretary Steve Mnuchin on Tuesday called on Congress to extend the payroll support program.
“The payroll programs created by the Cares Act have saved large numbers of jobs in the aviation industry, keeping workers busy and connected to their healthcare in an unprecedented time,” he said.
According to the Airlines for America trading group, US airlines collectively lose more than $ 5 billion a month.