United, American Airlines Among Carriers Taking Covid Loans
- Loan amount capped at $7.5 billion per passenger airline
- Cares Act appropriated $25 billion in loans amid pandemic
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American Airlines Group Inc. and United Airlines Holdings Inc. are among seven carriers taking federal loans that are capped at $7.5 billion apiece, the Treasury Department announced late Tuesday.
Accepting federal loans is seen as a last resort if no other funding comes through because of the government’s restrictions. Companies accepting federal loans are required to put a cap on executive compensation offer equity or other financial stakes to the government in exchange for the aid.