American Airlines Taps the Treasury for $5.5 Billion Loan and Could Seek More
American Airlines Group (NASDAQ: AAL) said late Friday that it has finalized a $5.5 billion loan from the U.S. Treasury and could borrow up to $2 billion more next month depending on how many other airlines look to the government for assistance.
American was originally allocated $4.75 billion of a $25 billion package of loans under the CARES Act stimulus plan, but rivals including Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) have said they do not intend to use the funds earmarked for them under the plan.
United Airlines Holdings (NASDAQ: UAL) is also expected to borrow under the Treasury plan.
Source Fool.com
