American Airways mentioned Monday it’s planning to problem $5 billion in bonds and search a $2.5 billion mortgage backed by its frequent flyer program, funds it intends to make use of to pay again a few of its debt used to assist climate the coronavirus pandemic.

American and huge rivals Delta Air Traces and United Airways have mortgaged their frequent flyer applications to assist address a plunge in income after the pandemic struck final 12 months. In September, Delta raised a report $9 billion in debt backed by its SkyMiles loyalty program.

Airways make cash from their frequent flyer applications by promoting miles to banks, which prospects earn by utilizing their bank cards. Final 12 months, American mentioned its AAdvantage program was valued at between $19.5 billion and $31.5 billion.

American’s sale consists of $2.5 billion in five-year bonds and one other $2.5 billion in eight-year bonds. The proceeds can be used to pay again federal loans that Congress handed final 12 months to assist the struggling airline business, different debt or different makes use of, the corporate mentioned.

American was granted about $5 billion below that program with the opportunity of upsizing it to $7.5 billion, however as of the tip of 2020, the airline had solely drawn on $550 million of that quantity. The mortgage has an rate of interest of about 4%.

Fort Price, Texas-based American had complete debt of $41 billion on the finish of 2020 up almost 23% from the 12 months earlier, earlier than the pandemic hit.