JetBlue sells loyalty points to bolster cash by $150m

JetBlue sold loyalty points to Barclays for $150m, making the carrier among the first in the US to use the method to raise cash as the coronavirus pandemic all but extinguishes demand for travel. “It was a good opportunity for us to get a small amount of incremental liquidity at attractive terms,” CFO Stephen Priest said Thursday. Barclays, which issues JetBlue’s co-branded credit card, confirmed the sale. The deal adds a new dimension to fundraising efforts by the battered airline industry. JetBlue has raised more than $2b since mid-March and received $936m from the US Treasury Department to support payroll expenses. The airline is seeking to raise an additional $750m over “the next couple of months,” Priest said. Airlines disclose few financial details of their loyalty programs, including their primary source of revenue: selling miles to banks that then use them to reward credit card use by customers. JetBlue received $475m from such deals last year, Stifel analyst Joe DeNardi said in an April report. <br/>