Delta to Borrow $6.5 Billion Backed by Its Frequent Flyer Program
Delta Air Lines (NYSE: DAL) said Monday that it intends to raise $6.5 billion in new debt backed by its SkyMiles frequent-flyer program, becoming the latest airline to tap its loyalty program for cash.
In a regulatory filing, Delta said it intends to sell senior secured notes and enter into a new credit facility backed by SkyMiles.
Airlines have been hit hard by the COVID-19 pandemic, which has squelched travel demand. The companies are burning through millions per day during the pandemic, and most in the industry believes traffic will not return to pre-pandemic levels until late 2021 at the earliest.
Source Fool.com
