United Kingdom
United States
Asia Pacific
Delta uses SkyMiles to raise funds
US carrier Delta Air Lines is using its frequent flyer programme as collateral to raise a further $6.5 billion.
It has turned SkyMiles into a separate subsidiary and is planning a private offering for senior secured notes and a senior secured term loan.
Rival US carriers United Airlines and Spirit Airlines have also used their own loyalty programmes to raise funds.
The subsidiary for the SkyMiles programme shows that in 2019 it made a net income of $2.5bn, which was more than half of the airline’s total earnings.
The subsidiary will be wholly-owned by Delta, with the airline providing a third of its revenue buying seats to reward SkyMiles members. The other two-thirds of its revenue will come from third parties.
Delta has already raised billions of dollars to keep it afloat since the start of the pandemic, including $5.4bn from the US government to cover salaries. The airline said it won’t take a second tranche of government funding, worth $4.6bn.
By Linsey McNeill, Editor (UK)
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Gatwick braces for strike