U.S. airlines probably will avoid applying for some $25 billion in loans under a federal aid package designed to help them survive the collapse in travel from the new coronavirus, according to JPMorgan Chase & Co., Bloomberg News reported. But the carriers will tap a similar amount in cash assistance for payrolls that should eliminate the risk of near-term bankruptcies, JPMorgan analyst Jamie Baker said in a report yesterday. A stipulation in the draft proposal that requires loan applicants to show that they have no other sources of capital “will preclude any airline in our coverage universe from applying, at least for the time being,” Baker said. While other funds are expected to grow more costly and harder to find, the four largest U.S. carriers secured billions of dollars in loans over the past few weeks. American Airlines Group Inc. borrowed $1 billion in term loans yesterday under an existing credit facility.
