American Airlines looks for $7.5B in new debt as it continues to burn through millions a day

American Airlines is looking to raise another $7.5 billion in debt through its AAdvantage Loyalty frequent flyer program and a new credit line, even as it struggles to lower its cash burn from the yearlong effects of the pandemic.

Fort Worth-based American Airlines said Monday that it would offer $5 billion in secured notes due in 2026 and 2029. The airline is also getting another $2.5 billion line of credit, adding to the pandemic war chest the company has needed to survive the disruption to the travel industry.

The search for more cash comes even as American Airlines is expected to pull in another $3.1 billion in airline payroll support through a third round of economic stimulus that will be voted on Tuesday by the U.S. House Tuesday. That government aid is expected to carry the airline through at least September without furloughs or pay cuts.

The new offerings and debt could bring American’s total debt near $50 billion, a record amount for the airline as it and other carriers continue to stockpile cash to make it through until travel returns to normal.

American Airlines is still losing about $30 million a day as it fights the devasting impact of the COVID-19 pandemic. About $8 million of American Airlines’ daily cash burn is due to debt, principal and cash severance payments, the company said at the end of January.

Traffic at U.S. airports is still down about 56% compared to pre-pandemic levels, according to data from the Transportation Security Administration. Recent weeks have shown a bump in traffic and how full planes are flying, but it will still take a dramatic increase in travelers for any airline to get back to financially sustainable levels.

American has tried to position itself to make it through the worst of the pandemic without having to worry about its worsening debt load. It doesn’t have any debt due for at least a year and these new rounds of debt won’t come due for at least five years.