US Treasury receives $556.7 million from auction of airline warrants
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
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