Delta latest airline to raise funds through loyalty program


Delta Air Lines will use its frequent flyer program to back up $6.5 billion in funding as the pandemic continues to buffet air travel

NEW YORK — Delta Air Lines will use its frequent flyer program to back up $6.5 billion in funding as the pandemic continues to buffet air travel.

Delta is only the latest to leverage its frequent flyer program to raise capital. United Airlines and American Airlines did the same in June.

Airline executives do not expect airline traffic to return to normal for some time, and that is raising pressure on lawmakers to step in and prevent mass job losses.

On Monday, Delta said the bonds and term loans linked to the funds will be secured by its SkyMiles program. SkyMiles IP plans to lend the net proceeds from the bonds and term loan to Delta, based in Atlanta, after depositing a portion of the proceeds in a reserve account.



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