United Airlines Gets $5 Billion Loan Secured by its MileagePlus Frequent-Flyer Program

By Kurt Stolz on 15 June 2020
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United Airlines said it would use its MileagePlus frequent-flyer program as collateral for a $5 billion loan that will help it weather the coronavirus pandemic.

The nation’s second biggest carrier said it requires the additional funds “as the airline navigates the most disruptive financial crisis in the history of aviation,” it said in a statement Monday morning.

Combined with an expected $4.5 billion loan from the federal government and current cash-on-hand, the airline will have approximately $17 billion in liquidity by the end of September, United said.

The Chicago-based carrier said that the use of the frequent-flyer program as collateral will have no impact on how the program is operated.

The terms of the deal will allow “the airline to operate, evolve, and grow the program,” the airline said.

(Photo: Accura Media Group)

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