Topline
American Airlines said Friday that it received a $5.5 billion loan from the U.S. Treasury and could get up to $2 billion more in October depending on how the Treasury allocates extra funds under a $25 billion loan package for airlines.
American Airlines CEO Doug Parker joins airline executives, union heads and political leaders to … [+]
Key Facts
American said it has already withdrawn $550 million of the loan, bringing its debt to $42 billion.
Its stock increased 2.8% in post-market trading following the announcement.
American was originally allocated $4.75 billion, but carriers including Delta and Southwest Airlines said they don’t intend to take their share.
It is possible other airlines will decline their share, which would be distributed to other airlines, as they have until Sept. 30 to decide.
Airlines received a separate $25 billion in March under the CARES Act, primarily as grants to avoid layoffs and furloughs through the end of this month.
