American and 4 Other Airlines Reach Loan Agreements

Dallas (AP) – Five airlines including American Airlines have reached tentative agreements for new loans from the government to help them survive the virus pandemic. The Treasury Department said Thursday it has letters of intent with American, Spirit, Frontier, Hawaiian and SkyWest. Those and all other leading U.S. airlines previously accepted a combination of grants and loans to help cover payroll costs through Sept. 30. These five are the first to take loans from a separate kitty that Congress set aside to help companies hurt by the pandemic. Air travel in the U.S. dropped about 95% by mid-April. It has recovered slowly but remains down about 75% from a year ago.