$600 Million for Delta?

Summary


ATLANTA -- A unit of American Express Co. agreed Monday to provide Delta Air Lines Inc. with up to $600 million in financing -- if the cash-strapped airline persuades its reluctant pilots to accept $1 billion in concessions. Delta shares soared 17 percent.

The deal with American Express Travel Related Services Company Inc. calls for up to $100 million of the financing to be in loans. The remaining $500 million will be in the form of a prepayment of SkyMiles, which is Delta's frequent flier miles program. American Express credit card users can already earn SkyMiles with their purchases.

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Extract


$600 Million for Delta?

The agreement provides no time line for when Delta will get the $100 million loan. The remaining $500 million will be split in...

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