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Jan. 21, 2021, 6:26 a.m. EST

Alaska Air to receive $533 million as part of extension of payroll support loans

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By Tomi Kilgore

Alaska Air Group Inc. /zigman2/quotes/200972303/composite ALK +0.42% disclosed Thursday that it will receive $533 million after it reached agreement last week with the U.S. Treasury on an extension of the Payroll Support Program (PSP), which is part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Alaska Air said its subsidiary's, Alaska Airline and Horizon Air, received $266 million on Jan. 15 and expects to receive the remainder sometime in February. As part of the agreement, the air carrier granted the U.S. Treasury 95,532 warrants to buy Alaska Air common stock at a strike price of $52.25. In addition, Alaska Airlines and Horizon Air agreed to not conduct involuntary furloughs or cut employee pay or benefits through March 31, and to limit executive compensation through Oct. 1, 2022. In addition, the agreed to not pay dividends or repurchase any shares until March 31, 2022. Alaska Air's stock, which was still inactive in premarket trading, has climbed 40.6% over the past three months, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS -0.35% has rallied 28.1% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.95% has gained 12.1%.

/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 64.89
+0.27 +0.42%
Volume: 1.78M
March 5, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$8.06 billion
Rev. per Employee
$162,113
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/zigman2/quotes/207744796/composite
US : U.S.: NYSE Arca
$ 25.71
-0.09 -0.35%
Volume: 10.59M
March 5, 2021 8:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,841.94
+73.47 +1.95%
Volume: 3.33B
March 5, 2021 5:44p
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