Originally Posted by
dera
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.
The cash they receive goes down as an asset as well but my point was the program is not fully leveraged. AA does not need to raise cash right now anyway, if anything they have too much but they’re being cautious.