U.S. Treasury releases $2.9 billion in airline support, finalizes payroll agreements

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The Treasury is initially giving major airlines 50% of funds awarded and releasing the remainder in a series of payments. In total, Treasury is awarding U.S. passenger airlines $25 billion in funds earmarked for payroll costs. Airlines must repay 30% of the funds in low-interest loans and grant Treasury warrants equal to 10% of the loan amount.

Treasury said Monday it has finalized grant agreements with Allegiant Air, American Airlines (O:AAL), Delta Air Lines (N:DAL), Southwest Airlines (N:LUV), Spirit Airlines (N:SAVE), and United Airlines (O:UAL).

Air carriers have been devastated by the coronavirus pandemic and seen U.S. travel demand fall by 95%.