American Secures Larger Government Loan After Rivals Reject Cash

American Airlines Group Inc.


AAL 4.42%

said it would be able to borrow more than expected from the U.S. Treasury after rivals walked away from government loans, helping the airline shore up its cash reserves.

American said in a filing Friday that it has come to terms with the Treasury for a $5.5 billion term loan facility using its frequent flier program as collateral, and expects to be able to increase that to as much $7.5 billion—a 58% increase from the $4.75 billion government loan American was originally offered.

The airline has also raised money from investors and has said it would raise more, but it is relying more on government financing than some competitors. American came into the crisis with more debt than its peers and has said the government loan is the most efficient source of cash. It said Friday it had already drawn down $550 million of

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