Delta Air Lines Inc. Is the latest carrier to use its frequent flyer program to protect cash in the weather Coronavirus epidemic, Backed by its SkyMiles program.5 announced plans to raise 6.5 billion.
Delta said Monday it will offer a private note and introduce a program-backed term loan facility, which seems to be building its war chest, despite having its largest fund. While Delta has raised $ 16.5 billion since the start of the epidemic, carriers are still bleeding about 27 27 million a day, Chief Financial Officer Fischer Paul L. Jacobs said last week.
U.S. Carriers received 25 25 billion in government funding under the Care Act, a broad stimulus package passed in March to help keep their workers employed during the summer. But that money is due to expire later this month, and negotiations for a new epidemic relief package could take place. Includes more support for airlines Has stopped. Airlines There are plans to furlough thousands of employees As of early October, more than 1,900 Delta pilots were involved.
With About 30% of last year’s level revolves around travel demand And showing some signs of rebounding, the airlines’ survival depends on their ability to raise as much cash as possible. After mortgaging planes, slots at crowded airports, and lucrative routes, airlines have repeatedly turned to flyer programs to secure loans.
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