Delta spins off its cash-cow frequent flyer program to serve as collateral for a $6.5 billion loan amidst the airline industry bloodbath

SourceBusiness Insider

Delta Air Lines said it will raise $6.5 billion by mortgaging its SkyMiles frequent flyer program. The airline will spin the program off into a separate holding company for the deal, something United pioneered with a similar deal in July. Airlines, including Delta, continue to hemmorhage cash during the coronavirus pandemic. Visit Business Insider's homepage for more stories. Delta Air Lines will become the latest airline to raise cash by using the billions it earns from its frequent flyer program as collateral. The airline said on Monday that it would raise $6.5 billion in loans backed by its SkyMiles program in a private notes offering. Airlines have raised cash through the pandemic largely by offering physical assets like aircraft as collateral, as well as airline business assets such as slots, routes, and airport gates. For US more...