As Delta pulls out of the Southwest, the Treasury Department may increase aviation corona virus loans as funds are released

The Treasury Department said Tuesday that airlines could receive larger federal loans than previously expected after some carriers withdrew.

In March, Congress approved a $ 25 billion federal loan to US passenger airlines International spread of corona virusThis keeps air travel demand at about 30% of last year’s level.

Despite the preliminary agreements, Southwest Airlines and Delta Airlines have stated that they do not plan to pursue loans, thanks to other financial sources. Delta, for example, said it was able to do so earlier this month Increase credit sales With the support of its Skymail Frequent Flying Program, it ranged from the planned $ 6.5 billion to $ 9 billion.

Airlines have until Wednesday to decide whether to take out federal loans.

Seven airlines, Alaska, American, Frontier, JetBlue, Hawaii, Skywest and United, plan to borrow, according to the Treasury Department.

The U.S. said last week it had received $ 5.5 billion from the program, more than the $ 4.75 billion it was expected to receive. The Ford Worth-based carrier expects to earn up to $ 7.5 billion, the maximum amount per carrier.

American passenger airlines also received $ 25 billion in wage support from the government, mostly subsidies. Those funds restrict carriers from cutting jobs until Oct. 1, but in a matter of hours, airlines, mostly US and United, plan to cut more than 30,000 jobs.

Airlines and their unions are urging Congress to secure an additional $ 25 billion to secure departmental jobs by March 31.