Treasury officials yesterday announced that five more airlines have signed letters of intent to accept government loans through the $2 trillion coronavirus economic relief package known as the CARES Act, the Washington Post reported. Alaska Airlines, Delta Air Lines, JetBlue Airways, United Airlines and Southwest Airlines join American, Frontier, Hawaiian, Sky West and Spirit airlines, which signed letters of intent last week. That brings to 10 the number of U.S. carriers that have signaled they will accept loans in addition to billions of dollars in government grants as they struggle to stay afloat amid the worst economic downturn in the industry's history. Under the CARES Act, airlines were eligible to receive more than $50 billion in grants and loans. The $25 billion grant program was focused on keeping pilots, flight attendants, mechanics and other front-line workers on the job. Another $4 billion in grants was made available to cargo carriers. The CARES Act provided $46 billion in loans, with $25 billion available to airlines, certified repair stations and ticket agents. Companies that receive loans must follow conditions similar to those required under the grant program, including keeping employees on the payroll through the end of September, maintaining certain levels of service as far out as 2022, and limiting stock buybacks and executive compensation.
