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Bond Market News

United Airlines Planning MileagePlus Minority-Stake Sale

February 3, 2022

United Airlines is planning to sell a minority stake in its frequent flier program MileagePlus, as per sources. One of the sources said that any minority stake in the MileagePlus subsidiary was expected to represent less than 15% of the portfolio with the airlines in touch with potential investors and PE firms. United is the first major US-based airline to consider exploring selling-off a chunk of its frequent-flier program with many others taking advantage by using them as collateral to issue debt. The partial stake sale is part of the CEO Scott Kirby’s plans to enhance financial performance by boosting the balance sheet without the issuance of new debt or equity. Besides, it also helps address investor concerns about large capex plans to renew United’s jet fleet.

United’s 4.625% 2029s were trading 0.3 points higher to 100.58, yielding 4.52%.

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