United To Use Frequent Flyer Program To Secure $5 Billion Loan

United has announced that it will used the United MileagePlus frequent flyer program to secure an additional $5 billion loan. This is in addition to $4.5 billion that they are expected to be able to access via the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) Loan Program. This will bring United to have $17 billion in liquidity by September 2020. This just goes to show how valuable these frequent flyer programs are for airlines.