Delta raising $6.5 billion, backed by frequent flyer program

NEW YORK (AP) — Delta Air Lines will exercise its frequent flyer program to support up $6.5 billion in funding as the pandemic continues to buffet air shuttle.

A inspiring drop in shuttle has left the airlines with tens of thousands extra workers than they must operate the vastly lowered series of flights. This spring, the airlines began receiving $25 billion in federal grants and loans to support workers on their payrolls for six months. With that money ending Sept. 30, the three most animated U.S. carriers are expected to furlough or lay off about 40,000 workers.

Delta is purely basically the most in vogue to leverage its frequent flyer program to lift capital. United Airlines and American Airlines did the same in June.

Airline executives attain no longer ask airline traffic to return to frequent for some time, and that is raising stress on lawmakers to step in and prevent mass job losses.

Final week a couple hundred flight attendants and pilots rallied on Capitol Hill and started a social media advertising campaign asking Congress for $25 billion in additional federal funds to forestall the furloughs subsequent month. Nonetheless the prospects for a pleasant deal suffered a blow Thursday, when Senate Democrats blocked a scaled-aid Republican idea. While the GOP bill had no money for transportation, its failure would possibly perhaps possibly well construct critical coronavirus reduction sooner than the November election much less likely.

On Monday, Delta acknowledged the bonds and duration of time loans linked to the funds will likely be secured by its SkyMiles program. SkyMiles IP plans to lend the online proceeds from the bonds and duration of time mortgage to Delta, basically based in Atlanta, after depositing a piece of the proceeds in a reserve sage.

Shares of Delta Air Lines Inc. climbed a puny in premarket shopping and selling.

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