Porter Airlines gets federal loan up to $270.5 million, including money for refunds

The parent company of Porter Airlines has reached an agreement with the federal government for loans valued up to $270.5 million, including $20.5 million to refund passengers for flight cancelled during the COVID-19 pandemic.

Porter Aviation Holdings Inc. says it will use the money primarily as a capital reserve during the pandemic recovery period.

The regional airline based at Toronto's island airport is the latest carrier to access loans through the government's Canada Enterprise Emergency Funding Corp.

Loans are repayable within five years with the loan to refund passenger payable over seven years.

All flights booked by Wednesday for travel as of Feb. 1, 2020, are immediately eligible for refunds. Online submissions will be accepted until Aug. 29 with refunds of the total purchase amount processed in the original form of payment.

Customers can keep their existing travel credits and receive a 25 per cent credit bonus, depending on their method of booking.

The credits are valid until Dec. 31, 2022, and are transferable.