 Alaska Air Group Inc. 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 has rallied 28.1% and the S&P 500 has gained 12.1%.
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