Company News

American Airlines says could seek larger Treasury loan, defer 737 MAX deliveries

FILE PHOTO: A member of a ground crew walks past American Airlines planes parked at the gate during the coronavirus disease (COVID-19) outbreak at Ronald Reagan National Airport in Washington, U.S., April 5, 2020. REUTERS/Joshua Roberts/File Photo

CHICAGO (Reuters) - American Airlines AAL.O could seek a larger loan from the U.S. Treasury Department, its chief financial officer said on Wednesday, noting that some peers may not use their portion of $25 billion in loans set aside for airlines under the CARES Act.

Southwest Airlines LUV.N has already announced that they are not taking the government loan, CFO Derek Kerr said at a conference, noting that the company is also in talks with Boeing Co BA.N to potentially defer the delivery of 18 737 MAX jets.

Reporting by Tracy Rucinski and Rachit Vats, Editing by Franklin Paul