March 19, 2020 / 12:30 PM / 15 days ago

American Airlines secures $1 billion credit line to deal with coronavirus crisis

FILE PHOTO: An American Airlines Boeing 737 MAX 8 flight from Los Angeles taxis after landing at Reagan National Airport shortly after an announcement was made by the FAA that the planes were being grounded by the United States over safety issues in Washington, U.S. March 13, 2019. REUTERS/Joshua Roberts

(Reuters) - American Airlines Group Inc (AAL.O) has secured a new year-long $1 billion credit line, taking its available liquidity to $8.4 billion, a regulatory filing showed on Thursday.

Companies have been shoring up their cash positions, as the coronavirus pandemic increasingly raises the prospect of a global economic downturn.

Airlines are among the corporations in most desperate need for cash, with the International Air Transport Association forecasting the global industry will need up to $200 billion of state support.

Washington has proposed $50 billion in loans for a rescue package, but not offered any grants as the airlines had requested, as they drastically reduce flights, park jets and cut costs including executive pay.

American said it had to maintain a minimum aggregate liquidity of $2 billion under the new credit agreement. (bit.ly/2U1A4al)

Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below