American Airlines may use loyalty program as collateral for U.S. debt: President

(Reuters) – American Airlines Group Inc (AAL.O) may use its Advantage loyalty program as collateral for a secured U.S. government loan, President Robert Isom said at a conference on Tuesday, noting that government talks are ongoing.

American is discussing terms for a $4.75 billion Treasury loan, separate from the $5.8 billion it has already secured in government payroll aid. The “impact value” of the loyalty program could range between $18 billion and $30 billion, Isom said.

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