Coronavirus: American Airlines to seek $12bn in state aid

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American Airlines has confirmed that it will seek $ 12 billion in financial support from the U.S. government due to the impact of the coronavirus.

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Employees were informed by email that "this would allow us to go through even the worst potential future scenarios".

He said it would mean "no involuntary leave or cuts in wage rates or benefits for the next six months".

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Employees will also be offered "enhanced voluntary leave and early retirement options".

Last year, the company made a profit of $ 2.9 billion and returned $ 1.3 billion to shareholders through dividends and repurchases, according to Bloomberg.

According to the massive $ 2.2 billion relief law passed by the US Congress last week, $ 50 billion was set aside for airlines with half the grant.

The other half will be offered as a loan in exchange for not disclosing employees until at least September 30.

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American Airlines, the world's largest passenger number, said it expects to have a full schedule by then.

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"These funds are being distributed to ensure continued essential airline service and protect jobs. We intend to apply for these funds and are confident that, together with our relatively high available cash position, they will allow us to traverse even the worst potential scenarios. future, "said the email to employees of Chief Executive Doug Parker and President Robert Isom.

Global airlines face difficulties, as countries around the world have prevented most passenger flights since February, as part of efforts to prevent the spread of the coronavirus.

Another U.S. airline, Delta, has also offered voluntary licensing, and carriers outside the U.S., such as Singapore Airlines, have revealed plans to raise funds by tapping into the equity and debt markets with the support of the sovereign investment fund Temasek Holdings.

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