Airlines seen spurning US loans now with other funds handy

U.S. airlines probably will avoid applying for some US$25b in loans under a federal aid package designed to help them survive the collapse in travel from the new coronavirus, according to JPMorgan Chase. 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 Wednesday. A stipulation in the draft proposal that requires loan applicants to show that they have no other sources of capital “will preclude any airline in our coverage universe from applying, at least for the time being,” Baker said. While other funds are expected to grow more costly and harder to find, the 4 largest US carriers secured billions of dollars in loans over the past few weeks. <br/>