American Airlines Group Inc. (AAL) disclosed Tuesday that it reached a Payroll Support Program Extension Agreement (PSP2) with the U.S. Treasury for an expected total of at least $3.09 billion. The company said the first installment of the PSP2 agreement of $1.54 billion was received on Jan. 15. As part of the agreement, American Airlines has agreed to issue warrants to the Treasury to buy shares of common stock. The warrants have an exercise price of $15.66 per share. American Airlines' stock, which rallied 1.5% in premarket trading, has climbed 25.5% over the past three months through Friday, while the U.S. Global Jets ETF (JETS) has advanced 26.0% and the S&P 500 has gained 10.0%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 19, 2021 09:15 ET (14:15 GMT)
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