U.S. Treasury Nets $556.7 Million from Airline Warrants Sale Amid COVID-19 Bailout Recovery

U.S. Treasury Nets $556.7 Million from Airline Warrants Sale Amid COVID-19 Bailout Recovery

The U.S. Treasury Department has received $556.7 million from selling airline warrants, a part of the $54 billion COVID-19 assistance package to major U.S. airlines.

Washington, United States, Bollywood Fever: The U.S. Treasury Department announced on Friday that it received $556.7 million from auctions selling warrants in 11 major U.S. airlines, which were acquired in exchange for COVID-19 assistance. These proceeds represent a fraction of the total $54 billion in bailout funds provided to airlines during the pandemic in 2020 and 2021.

Airlines were required to repay $14 billion of the bailout, with the Treasury receiving warrants to purchase stock at the share prices at the time of the awards. These warrants are set to expire between April 2025 and June 2026.

The Treasury had set revised minimum prices for the warrants at a total of $458 million. A spokesperson for the department indicated that the individual auction sale prices would be publicly announced later this summer.

American Airlines received the most substantial assistance at $12.6 billion, followed by Delta with $11.9 billion, United Airlines with $10.9 billion, and Southwest at $7.2 billion. Seven other airlines received smaller amounts, such as $2.2 billion for Alaska Airlines.

The reserve prices set by the Treasury for the airline warrants were as follows:

  • Delta: $221 million
  • United: $159 million
  • American Airlines: $25 million
  • SkyWest: $30 million
  • Alaska Air: $17 million
  • Hawaiian Airlines: $2.7 million
  • Frontier Group: $1.9 million
  • Southwest: $1.7 million

Warrants for Allegiant, Spirit Airlines, and JetBlue were sought at a minimum of $50,000 per airline and were priced below the current trading prices of the carriers’ stocks.

Southwest Airlines and Delta Air Lines declined to comment on the warrant sales, while other airlines did not immediately respond to requests for comment.

In addition to the bailouts, the U.S. government also extended $25 billion in low-cost loans to airlines. The 2020 pandemic caused a historic collapse in air travel demand, with U.S. air passenger travel dropping by 60%, reaching its lowest level since 1984. This dramatic decrease, over 550 million passengers, forced airlines to slash costs and struggle for survival.

Also Read other news articles, US to Ban Sale of Kaspersky Antivirus Software Over Security Concerns

American Airlines Places Employees on Leave After Racial Discrimination Lawsuit

Arbitrum Revenue Soars to $3.4M Amid LayerZero’s ZRO Token Airdrop Frenzy



Sachin Chouhan is an avid entertainment enthusiast and dedicated follower of celebrity and entertainment news. He has always had a passion for the latest happenings in the world of entertainment and has made it his mission to stay up-to-date on all the latest trends, news, and gossip. With years of experience following the entertainment industry, Sachin has developed a keen eye for the latest celebrity fashion trends, music releases, movie reviews, and red-carpet events. His in-depth knowledge and expertise have made him a trusted source for entertainment news and celebrity updates. Contact us: admin@bollywoodfever.co.in

Leave a Reply