Photo: Joshua Lott/AFP via Getty Images

United Airlines said Monday that it secured a $5 billion loan using its MileagePlus loyalty program as collateral and has other assets to pledge if it decides to tap another $4.5 billion from taxpayers to weather the coronavirus crisis.

Why it matters: While officials at the Chicago-based airline said there's early evidence of a modest rebound in air travel, their goal is to build a $17 billion cash cushion by the end of the third quarter — three times their normal liquidity balance.

Details: The MileagePlus loyalty program is one of United's most valuable assets, spinning off $5.3 billion in cash and $1.8 billion in EBITDA profit each year, and is worth an estimated $20 billion, according to company officials.

  • The revenue comes as consumers redeem frequent-flier miles for trips, credit card purchases, hotels, car rentals and other items from United's non-airline partners.
  • While some bankrupt airlines have used their frequent-flier programs as collateral to obtain financing in the past, United said its deal is uniquely structured so it will not give up any operating control — or equity — to its lenders.
  • Goldman Sachs, Barclays Bank and Morgan Stanley are providing the loan.

What to watch: United says it has other collateral such as airport gates, slots and routes to secure a future $4.5 billion Treasury loan, should it need to under the CARES Act.

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Updated Jul 1, 2020 - Economy & Business

Congress passes extension of Paycheck Protection Program

Illustration: Sarah Grillo/Axios

The House and Senate both unanimously voted to extend the application period for Paycheck Protection Program loans through Aug. 8, just hours before it was set to expire.

Why it matters: There's still over $130 billion in PPP funds available, which could help small businesses pay overhead and keep employees on payroll. It also could help independent contractors like Uber drivers.

Updated 25 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 7 a.m. ET: 11,288,094 — Total deaths: 531,244 — Total recoveries — 6,075,489Map.
  2. U.S.: Total confirmed cases as of 7 a.m. ET: 2,839,917 — Total deaths: 129,676 — Total recoveries: 894,325 — Total tested: 34,858,427Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity.
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Trump extends PPP application deadlineKimberly Guilfoyle tests positive.
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.

Trump's failing culture wars

Data: Google; Chart: Naema Ahmed/Axios

President Trump built his political brand by stoking the nation's culture wars, but search data is showing us how much harder it's been for him to replicate that success while running against another white man in his 70s — and while there's a coronavirus pandemic.

The big picture: Google Trends data shows Trump's "Sleepy Joe" name-calling isn't generating nearly the buzz "Crooked Hillary" (or "Little Marco") did in 2016. Base voters who relished doubting President Obama's birth certificate aren't questioning Biden's.