Delta Air Traces passenger planes are seen parked as a result of flight reductions made to sluggish the unfold of coronavirus illness (COVID-19), a
Delta Air Traces passenger planes are seen parked as a result of flight reductions made to sluggish the unfold of coronavirus illness (COVID-19), at Birmingham-Shuttlesworth Worldwide Airport in Birmingham, Alabama, March 25, 2020.
Elijah Nouvelage | Reuters
Delta Air Traces on Monday mentioned that it’ll borrow $6.5 billion backed by its frequent flyer program, the third airline to faucet its loyalty program to shore up liquidity because it struggles by way of the coronavirus disaster.
The airline plans to promote senior secured notes and enter into a brand new credit score facility, each backed by its SkyMiles program. SkyMiles will lend the online proceeds of the bond providing to Delta, though a portion will go to a reserve account.
United Airways in June introduced it might use its frequent flyer program, MileagePlus, to again a $5 billion mortgage. American Airways has mentioned it additionally plans to make use of its program to as collateral for a virtually $5 billion federal mortgage.