In a show of greater financial support for the post-bankruptcy Delta Air Lines, credit card processors on Wednesday lifted a $1.1 billion withholding requirement for Delta tickets purchased on Visa or MasterCard, freeing up about $800 million that will be used to improve the airline's domestic and international markets.
"This new agreement reflects the strong confidence of the financial markets in our ability to deliver on our plan's commitments," Edward H. Bastian, Delta's executive vice president and chief financial officer, said in a statement.
While the airline was going through bankruptcy proceedings, the credit card processors withheld paying the nation's third-largest airline for an amount generally equal to potential liability for tickets purchased with Visa or MasterCard that hadn't yet been used for travel.
Processors may resume withholding credit card payments to Delta Air Lines Inc. after Oct. 31, 2008 if the agreement is not extended, the airline said.
