Delta, United join US carriers in receiving Treasury loans

WASHINGTON: Five more US air carriers including Delta Air Lines and United Airlines will take out loans under the CARES Act stimulus package, Treasury Secretary Steven Mnuchin said on Tuesday.

The decision means most major US air carriers have agreed to accept financing from the $2.2 trillion measure passed in late March to blunt the impact of the coronavirus pandemic.

"We welcome the news that Alaska Airlines, Delta Air Lines, JetBlue Airways, United Airlines, and Southwest Airlines have now also signed letters of intent," Mnuchin said in a statement.

The CARES Act provided for $25 billion to be lent to airlines. While carriers were initially hesitant to take the money for fear of draconian conditions, Treasury announced last week that American Airlines, Frontier Airlines, Hawaiian Airlines, Sky West Airlines and Spirit Airlines agreed to the government's terms.

Treasury did not specify the amount each airline was receiving, saying only that it required borrowers to provide warrants, which are financial instruments that can be converted into shares, or other forms of debt or equity.