American Airlines (AA) has reportedly revealed plans that it may ask the US Treasury for a larger loan to strengthen its financial position.

Reuters reported citing AA chief financial officer Derek Kerr’s statement at a Cowen conference that the move is being considered as some carriers may not be using their allocation of grants and loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act for airlines.

The $25bn programme was set aside to help airlines to protect the employment of pilots, flight attendants, mechanics and other frontline workers.

In June, AA planned to secure $3.5bn in new financing including $1.5bn by selling shares and convertible senior notes due 2025 and an additional $1.5bn to be offered in senior secured notes as it addresses the impact inflicted by the coronavirus (Covid-19) pandemic restrictions.

AA is also negotiating with aircraft manufacturer Boeing to delay the delivery of 18 Boeing 737 MAX jets.

Deliveries for the grounded aircraft was initially scheduled for 2021 and 2022.

The 737 MAX fleet has been grounded since March 2019 following two fatal crashes.

In May, American Airlines reportedly planned to cut 5,000 management and support staff positions as the Covid-19 pandemic continues to affect business.

Until the end of last year, the carrier had 130,000 employees. Around 39,000 are on voluntary leaves or early retirement as of May.

Last week, Irish budget carrier Ryanair raised gross proceeds of nearly €400m through a non-pre-emptive placing of new ordinary shares for greater financial flexibility to capitalise on significant post-Covid-19 growth opportunities.