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Stock impact report

American Airlines: Treasury Throws Curve Ball [Seeking Alpha]

Delta Air Lines, Inc. (DAL) 
Last delta air lines, inc. earnings: 4/22 07:00 am Check Earnings Report
US:NYSE Investor Relations: ir.delta.com
Company Research Source: Seeking Alpha
SummaryAmerican Airlines is trading down as the U.S. Treasury appears to alter the expected terms of payroll grants.The airline unions appear the most impacted with the Treasury Secretary demanding 30% of grant aid via loans that need to be repaid.American Airlines will need to slash employee costs without a grant from the government.The stock remains a buy as the outcome is not as dire as the market fears as slashed employee costs will stem cash flow losses.The airlines appeared cleared for takeoff, but the U.S. Treasury threw a last-minute curveball to the industry, causing the stocks fall in early trading on Monday. The employee-payroll protection grants are suddenly up in the air, and airlines likeAmerican Airlines GroupAALdire situationImage Source: American Airlines websiteTreasury SwitchAs part of the CARES Act, the government agreed to provide up to$25 billion in grantsIn a major switch to the industry, the Treasury has apparently made thefollowing requirementsThe major holdup Show less Read more
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