March 19, 2020 / 12:23 PM / 16 days ago

American Airlines secures $1 bln credit line to deal with coronavirus crisis

March 19 (Reuters) - American Airlines Group Inc has secured a new year-long $1 billion credit line, taking its available liquidity to $8.4 billion, a regulatory filing showed on Thursday.

Companies have been shoring up their cash positions, as the coronavirus pandemic increasingly raises the prospect of a global economic downturn.

Airlines are among the corporations in most desperate need for cash, with the International Air Transport Association forecasting the global industry will need up to $200 billion of state support.

Washington has proposed $50 billion in loans for a rescue package, but not offered any grants as the airlines had requested, as they drastically reduce flights, park jets and cut costs including executive pay.

American said it had to maintain a minimum aggregate liquidity of $2 billion under the new credit agreement. (bit.ly/2U1A4al)

Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi

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