Delta Air Lines on Monday said that it will borrow $6.5 billion backed by its frequent flyer program, the third airline to tap its loyalty program to shore up liquidity as it struggles through the coronavirus crisis.
The airline plans to sell senior secured notes and enter into a new credit facility, both backed by its SkyMiles program. SkyMiles will lend the net proceeds of the bond offering to Delta, although a portion will go to a reserve account.
United Airlines in June announced it would use its frequent flyer program, MileagePlus, to back a $5 billion loan. American Airlines has said it also plans to use its program to as collateral for a nearly $5 billion federal loan.
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