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Report Under Section 4026(b)(1) of the CARES Act on 

Loans to Air Carriers, Eligible Businesses, and National Security Businesses 

Program Description

Section 4003 of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) 

authorizes the Treasury Department to make loans, loan guarantees, and other 

investments to provide liquidity to eligible businesses related to losses incurred as a result 

of coronavirus.

The CARES Act provides:

(1) up to $25 billion for loans and loan guarantees for passenger air carriers; eligible 

businesses that are certified under 14 CFR part 145 and approved to perform 

inspection, repair, replace, or overhaul services; and ticket agents (as defined in 

49 U.S.C. § 40102); 

(2) up to $4 billion for loans and loan guarantees for cargo air carriers; and

(3) up to $17 billion for loans and loan guarantees for businesses critical to 

maintaining national security.

A loan or loan guarantee under section 4003 may be made in such form and on such 

terms and conditions and contain such covenants, representations, warranties, and 

requirements as the Treasury Secretary determines appropriate. However, the CARES 

Act specifies a number of requirements applicable to these loans. Among other 

requirements under the statute, borrowers must agree to maintain employment levels as 

of March 24, 2020 to the extent practicable, and in any case not reduce their employment 

levels by more than 10 percent from the levels on such date, until September 30, 2020. 

Borrowers must also agree to certain restrictions on employee compensation; agree not 

to repurchase stock, except to the extent required under a contractual obligation in effect 

as of March 27, 2020; and agree not to pay dividends or make other capital distributions 

with respect to the borrower’s common stock until 12 months after the loan has been 

repaid.

In addition, the CARES Act requires that Treasury receive a warrant or equity instrument 

in the borrower if the borrower is a public company (unless Treasury determines that the

issuance of warrants or equity is infeasible, in which case the company must provide a 

senior debt instrument), or a warrant, equity instrument, or senior debt instrument if the 

borrower is a private company, to compensate taxpayers.

Reporting Requirements

The CARES Act requires Treasury to make a number of disclosures regarding its loans 

and loan guarantees under section 4003 of the CARES Act:

(1) under section 4026(a) of the CARES Act, not later than 72 hours after any 

transaction under section 4003(b)(1), (2), or (3) of the CARES Act, Treasury must 
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publish on its website a description of the transaction, certain transaction terms, 

and transaction documentation;

(2) under section 4026(b)(1)(A) of the CARES Act, not later than seven days after any 

loan or loan guarantee under section 4003(b)(1), (2), or (3), Treasury must submit 

to Congress a report summarizing the actions taken under those provisions and 

certain related financial information;

(3) under section 4026(b)(1)(B) of the CARES Act, not later than seven days after 

delivering the report to Congress described above, Treasury must publish the 

report on its website; and

(4) under section 4026(b)(1)(C) of the CARES Act, every 30 days while a loan or loan 

guarantee under section 4003(b)(1), (2), or (3) is outstanding, Treasury must 

publish on its website a report summarizing its reports to Congress described 

above. 

Current Report

This is Treasury’s second report under section 4026(b)(1) of the CARES Act and reflects 

seven transactions: two transactions on September 25, 2020, three transactions on 

September 28, 2020, and two transactions on September 29, 2020.

Treasury entered into seven loan transactions under section 4003(b)(1), (2), or (3), for a 

total of $14.655 billion. Of this amount, $1.575 billion has been disbursed.

Alaska Airlines, Inc.

Treasury agreed to make a loan of up to $1.301 billion to Alaska Airlines, Inc. (Alaska 

Airlines), a wholly owned subsidiary of Alaska Air Group, Inc., and one of the largest 

domestic airlines in the United States. Alaska Airlines had approximately 22,000 U.S. 

employees in March 2020 and carried more than 46 million passengers in 2019. 

The loan is secured by Alaska Airlines’ Mileage Plan loyalty program. The loan has an 

interest rate equal to LIBOR plus 2.5% and matures on September 26, 2025. Alaska 

Airlines elected to draw $135 million upon closing of the loan and may draw the 

remaining loan funds in multiple draws through March 26, 2021. The loan proceeds will 

be used to provide liquidity to continue Alaska Airline’s operations. The transaction 

agreement includes covenants by Alaska Airlines to comply with certain restrictions on 

employee compensation, stock repurchases, dividends, and reductions in employment 

levels, as required by the CARES Act. Treasury will receive warrants to purchase 

common stock equal to 10% of the total loan amount drawn. Treasury expects, subject 

to certain conditions and satisfactory documentation, to increase the amount of the loan 

available to Alaska Airlines to $1.928 billion.

American Airlines, Inc.

Treasury agreed to make a loan of up to $5.477 billion to American Airlines, Inc.

(American Airlines), a wholly owned subsidiary of American Airlines Group, Inc. and one 

of the largest domestic airlines in the United States. American Airlines had 
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approximately 157,000 U.S. employees in March 2020 and carried more than 150 

million passengers in 2019.

The loan is secured by American Airlines’ AAdvantage loyalty program. The loan has 

an interest rate equal to LIBOR plus 3.5% and matures on June 30, 2025. American 

Airlines elected to draw $550 million upon closing of the loan and may draw the 

remaining loan funds in multiple draws through March 26, 2021. The loan proceeds 

will be used to provide liquidity to continue American Airline’s operations. The 

transaction agreement includes covenants by American Airlines to comply with certain 

restrictions on employee compensation, stock repurchases, dividends, and reductions 

in employment levels, as required by the CARES Act. Treasury will receive warrants 

to purchase common stock equal to 10% of the total loan amount drawn. Treasury 

expects, subject to certain conditions and satisfactory documentation, to increase the 

amount of the loan available to American Airlines to $7.5 billion.

Frontier Airlines, Inc.

Treasury agreed to make a loan of up to $574 million to Frontier Airlines, Inc. (Frontier 

Airlines), a wholly owned subsidiary of Frontier Airlines Holdings, Inc., and one of the 

largest domestic airlines in the United States. Frontier Airlines had approximately 

5,000 U.S. employees in March 2020 and carried more than 21 million passengers in 

2019.

The loan is secured by the Frontier Airlines’ Frontier Miles loyalty program. The loan 

has an interest rate equal to LIBOR plus 2.5% and matures on September 26, 2025. 

Frontier Airlines elected to draw $150 million upon closing of the loan and may draw 

the remaining loan funds in multiple draws through March 26, 2021. The loan 

proceeds will be used to provide liquidity to continue Frontier Airline’s operations. The 

transaction agreement includes covenants by Frontier Airlines to comply with certain 

restrictions on employee compensation, stock repurchases, dividends, and reductions 

in employment levels, as required by the CARES Act. Treasury will receive warrants 

to purchase common stock equal to 10% of the total loan amount drawn. Treasury 

expects, subject to certain conditions and satisfactory documentation, to increase the 

amount of the loan available to Frontier Airlines.

Hawaiian Airlines, Inc.

Treasury agreed to make a loan of up to $420 million to Hawaiian Airlines, Inc.

(Hawaiian Airlines), a wholly owned subsidiary of Hawaiian Holdings, Inc. and one of 

the largest domestic airlines in the United States. Hawaiian Airlines had approximately 

7,400 U.S. employees in March 2020 and carried more than 11 million passengers in

2019.

The loan is secured by Hawaiian Airlines’ HawaiianMiles loyalty program and certain 

aircraft. The loan has an interest rate equal to LIBOR plus 2.5% and matures on June 

30, 2024. Hawaiian Airlines elected to draw $45 million upon closing of the loan and 

may draw the remaining loan funds in multiple draws through March 26, 2021. The loan 

proceeds will be used to provide liquidity to continue Hawaiian Airline’s operations. The 
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transaction agreement includes covenants by Hawaiian Airlines to comply with certain 

restrictions on employee compensation, stock repurchases, dividends, and reductions in 

employment levels, as required by the CARES Act. Treasury will receive warrants to 

purchase common stock equal to 10% of the total loan amount drawn. Treasury 

expects, subject to certain conditions and satisfactory documentation, to increase the 

amount of the loan available to Hawaiian Airlines to $622 million.

JetBlue Airways Corporation

Treasury agreed to make a loan of up to $1.14 billion to JetBlue Airways Corporation 

(JetBlue Airways), one of the largest domestic airlines in the United States. JetBlue 

Airways had approximately 23,000 U.S. employees in March 2020 and carried more 

than 42 million passengers in 2019. 

The loan is secured by JetBlue Airways’ TrueBlue loyalty program and certain aircraft. 

The loan has an interest rate equal to LIBOR plus 2.75% and matures on September 

29, 2025. JetBlue Airways elected to draw $115 million upon closing of the loan and 

may draw the remaining loan funds in multiple draws through March 26, 2021. The 

loan proceeds will be used to provide liquidity to continue JetBlue Airways’ operations. 

The transaction agreement includes covenants by JetBlue Airways to comply with 

certain restrictions on employee compensation, stock repurchases, dividends, and 

reductions in employment levels, as required by the CARES Act. Treasury will receive 

warrants to purchase common stock equal to 10% of the total loan amount drawn. 

Treasury expects, subject to certain conditions and satisfactory documentation, to 

increase the amount of the loan available to the JetBlue Airways to $1.948 billion.

SkyWest Airlines, Inc.

Treasury agreed to make a loan of up to $573 million to SkyWest Airlines, Inc. 

(SkyWest Airlines), a wholly owned subsidiary of SkyWest, Inc., and one of the largest 

domestic airlines in the United States. SkyWest Airlines had approximately 15,000 

U.S. employees in March 2020 and carried more than 35 million passengers in 2019. 

The loan is secured by certain engines, airframes, and rotable parts. The loan has an 

interest rate equal to LIBOR plus 3.0% and matures on September 29, 2025. SkyWest 

Airlines elected to draw $60 million upon closing of the loan and may draw the 

remaining loan funds in multiple draws through March 26, 2021. The loan proceeds will 

be used to provide liquidity to continue the SkyWest Airline’s operations. The 

transaction agreement includes covenants by SkyWest Airlines to comply with certain 

restrictions on employee compensation, stock repurchases, dividends, and reductions in 

employment levels, as required by the CARES Act. Treasury will receive warrants to 

purchase common stock equal to 10% of the total loan amount drawn. Treasury 

expects, subject to certain conditions and satisfactory documentation, to increase the 

amount of the loan available to the SkyWest Airlines.

United Airlines, Inc.

Treasury agreed to make a loan of up to $5.17 billion to United Airlines, Inc. (United 
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Airlines), a wholly owned subsidiary of United Airlines Holdings, Inc., and one of the 

largest domestic airlines in the United States. United Airlines had approximately 

93,000 U.S. employees in March 2020 and carried more than 162 million passengers 

in 2019. 

The loan is secured by United Airlines’ European and South American routes and 

certain aircraft. The loan has an interest rate equal to LIBOR plus 3.0% and matures 

on September 26, 2025. United Airlines elected to draw $520 million upon closing of 

the loan and may draw the remaining loan funds in multiple draws through March 26, 

2021. The loan proceeds will be used to provide liquidity to continue United Airline’s 

operations. The transaction agreement includes covenants by United Airlines to 

comply with certain restrictions on employee compensation, stock repurchases, 

dividends, and reductions in employment levels, as required by the CARES Act. 

Treasury will receive warrants to purchase common stock equal to 10% of the total 

loan amount drawn. Treasury expects, subject to certain conditions and satisfactory 

documentation, to increase the amount of the loan available to United Airlines to $7.5 

billion.

The loan agreements are available on Treasury’s website at 

https://home.treasury.gov/policy-issues/cares/preserving-jobs-for-americanindustry/loans-to-air-carriers-eligible-businesses-and-national-security-businesses.
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Detailed Financial Statement ($ Thousands)

1. Only certain categories of entities are eligible to receive loans under sections 4003(b)(1), (2), and (3) of the CARES Act. Under those 

provisions, a borrower must be a passenger air carrier; a business that is certified under 14 CFR part 145 and approved to perform 

inspection, repair, replace, or overhaul services; a ticket agent (as defined in 49 U.S.C. 40102); a cargo air carrier; or a business 

critical to maintaining national security.

2. The location provided is the address included by borrowers in their applications and may not include all locations in which a borrower 

operates.

3. Includes disbursements between September 25, 2020, and September 29, 2020. As noted elsewhere in this report, Treasury 

expects, subject to certain conditions and satisfactory documentation, to increase the amount of available loans for certain borrowers.

Borrower

Borrower 

Type1 City2 State2

Borrower 

Type1

Date of Loan 

Agreement

Maturity 

Date

Total 

Anticipated 

Loan 

Amount Disbursements3

Alaska 

Airlines, Inc.

Passenger 

Air Carrier Seattle WA Passenger 

Air Carrier 09/28/20 06/30/25 $1,301,000 $135,000

American 

Airlines, Inc.

Passenger 

Air Carrier Fort Worth TX Passenger Air Carrier 09/25/20 06/30/25 $5,477,000 $550,000

Frontier 

Airlines, Inc.

Passenger 

Air Carrier Denver CO Passenger Air Carrier 09/28/20 09/26/25 $574,000 $150,000

Hawaiian 

Airlines, Inc.

Passenger 

Air Carrier Honolulu HI Passenger Air Carrier 09/25/20 06/30/24 $420,000 $45,000

JetBlue 

Airways 

Corporation

Passenger 

Air Carrier

Long 

Island City NY Passenger Air Carrier 09/29/20 09/29/25 $1,140,000 $115,000

SkyWest 

Airlines, Inc.

Passenger 

Air Carrier St. George UT Passenger Air Carrier 09/29/20 09/29/25 $573,000 $60,000

United 

Airlines, Inc.

Passenger 

Air Carrier Chicago IL Passenger Air Carrier 09/28/20 09/26/25 $5,170,000 $520,000