Delta Air Lines Gets $600 Million Financing From Amer Express Monday October 25, 3:07 PM EDT ATLANTA -(Dow Jones)- Delta Air Lines Inc. (DAL) secured financing of up to $ 600 million from an American Express Co. (AXP) unit in the form of a loan and prepayment for its frequent flyer program SkyMiles. In recent months, Delta has been cutting costs to avoid bankruptcy protection sought by rivals UAL Corp.'s (UALAQ) United Airlines and, for the second time, US Airways Group Inc. (UAIRQ). In a press release Monday, Delta said will receive up to $100 million from American Express Travel Related Services Co. The loan will form part of a new credit facility Delta is currently currenty negotiating with creditors. The remaining $500 million will fund future purchases of Delta's SkyMiles rewards points for three years. Delta provided a pool of assets to collateralize the financing. Additionally, Delta and its loyalty management unit agreed to a multiyear extention of a credit card cobranded with American Express, as well as their membership rewards and merchant services partnerships. A major part of the airline's cost cutting efforts involve the nearly $1 billion in cost concessions it is currently negotiating with its pilots union. Earlier Monday, Delta said it believes it is closer to an agreement but warned the pilot deal alone may not prevent bankruptcy. Delta has to reach a deal by Tuesday in order to meet a deadline in a related debt exchange offer, another cost-cutting maneuver. New York Stock Exchange-listed shares of Delta recently traded at $3.87, up 63 cents, or 19%. Company Web site: http://www.delta.com Roger EWROPS