US Treasury receives $556.7 million from auction of airline warrants

Hawaiian Holdings

21/06/2024 21:15

By David Shepardson
       WASHINGTON, June 21 (Reuters) - The U.S. Treasury
Department said Friday it received $556.7 million in proceeding
from auctions to sell warrants in 11 major U.S. airlines the
government received in exchange for COVID-19 assistance.
    Congress approved $54 billion in COVID-19 air carrier
bailouts in 2020 and 2021. Airlines were required to repay $14
billion of that total and Treasury received warrants to purchase
stock at the share price of the time of the awards.
    Treasury had set revised minimum prices for the warrants of
$458 million in total.
    American Airlines  AAL.O  received $12.6 billion in
government assistance, followed by Delta Air Lines  DAL.N  
$11.9 billion, United Airlines  UAL.O  $10.9 billion, and
Southwest Airlines  LUV.N  at $7.2 billion.
    Seven other airlines received smaller awards, including $2.2
billion for Alaska Airlines  ALK.N .
    The warrants expire between April 2025 and June 2026.

 (Reporting by David Shepardson, Editing by Franklin Paul)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))