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Airlines Seen Spurning U.S. Loans Now With Other Funds Handy

  • Federal cash aid to avert near-term bankruptcies: JPMorgan
  • Collapse in travel demand remains a risk in second half
Delta Air Lines Inc. aircraft sit parked at a field in Victorville, California, on March 23.
Photographer: Patrick T. Fallon/Bloomberg
Updated on

U.S. airlines probably will avoid applying for some $25 billion in loans under a federal aid package designed to help them survive the collapse in travel from the new coronavirus, according to JPMorgan Chase & Co.

But the carriers will tap a similar amount in cash assistance for payrolls that should eliminate the risk of near-term bankruptcies, JPMorgan analyst Jamie Baker said in a report Wednesday.