Delta Air Lines plans to borrow $9.5 billion against the SkyMiles frequent flyer program.

The carrier said it will use the loan proceeds for general corporate purposes and to bolster its liquidity position.

With the move, Delta will join United and American in leveraging its loyalty program to help see its way through the Covid-19 crisis.

United secured $5 billion against the Mileage Plus program in July. American pledged AAdvantage program assets to secure a $4.75 billion federal Cares Act loan.

Delta ended the June quarter with $15.7 billion in liquidity, enough to operate for 19 months based upon its cash burn levels at that time of $27 million per day.

Update: This report initially said that delta planned to borrow $6.5 billion against its SkyMiles program, but the airline announced on Sept. 17 that it would upsize the amount to $9.5 billion.


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