Originally Posted by
Dunkin
It is leveraged but not fully leveraged, some firms estimate the AAdvantage program is worth up to $30 billion. AA could pre sale more miles to Citi and Barclays at a discount to raise more capital.
That's not how it works. The miles they sell go to liabilities as "
Loyalty program liability" (which end of 2021 was just under 3 billion). It is a way to raise cash but it's not capital, it is a liability.