Delta Air Lines Collects Additional US$3bn In Government Support

Delta Air Lines and the US Department of the Treasury have reached an arrangement for supplementary funding. The Payroll Support Program Extension Agreement (PSP Extension Agreement) gives Delta access to almost US$3 billion in funds, which are only permitted to be utilised for employee wages, salaries, and benefits.

The relief payments come in two types. The first $2.0 billion takes the form of grants, and an additional $830 million in an unsecured 10-year loan. The initial installment of $1.4 billion has already been given to Delta as of January 15th. The outstanding balance will be delivered to the airline prior to the first quarter of 2021 ending.

The US$830mil loan comes with an annual interest rate of 1.00% for the first five years (until January 15th 2026), and the applicable secured overnight financing rate plus 2.00% in the final five years.