The Treasury Department announced it has finalized the terms of loans for five U.S. airlines, including American Airlines, amid the coronavirus travel bust after setting aside $46 billion for loans and loan guarantees to the airline industry thanks to the CARES Act.
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American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines and Spirit Airlines have signed letters of intent to receive the CARES Act loans, according to the Treasury.
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"We are pleased that major air carriers intend to use this important program and for Treasury to use its authority under the CARES Act to provide much-needed financial assistance, while ensuring appropriate taxpayer compensation," Treasury Secretary Steve Mnuchin said in a statement. "Conversations with other airlines continue, and we look forward to finalizing agreements as soon as possible."
The borrowers will have to keep employment levels and restrict employee compensation, dividends and share repurchases to qualify for the CARES Act loans.
Many airlines and airline-adjacent companies have had to cut staff as they burn money while trying to operate, sometimes with only a few passengers per airplane.
President Trump congratuled Boeing during a press briefing on Thursday.
"Boeing has made tremendous progress in a short amount of time," Trump said.