(Reuters) - JetBlue Airways ( JBLU ) said on Monday it plans to raise about $3.15 billion in capital through separate debt offerings, the majority backed by its loyalty program, TrueBlue, as it tries to improve its liquidity.

Shares of the company were down 8% in premarket trading.

The New York-based airline intends to raise $1.5 billion through a private offering of senior secured notes and an additional $1.25 billion via a term loan, secured by TrueBlue.

Leveraging loyalty programs as collateral has become a popular strategy for airlines to boost liquidity, a practice that gained traction during the COVID-19 pandemic.

Major carriers like Delta Air and United Airlines previously leveraged their loyalty programs to enhance cash reserves during challenging times.

JetBlue ( JBLU ) has been trying to control costs, including deferring deliveries of 44 new jets from Airbus, reducing its planned capital expenditure by about $3 billion between 2025 and 2029.

The airline's operations have also been impacted by a powder metal issue with Pratt & Whitney's Geared Turbofan (GTF) engines, forcing JetBlue ( JBLU ) to ground several aircraft.

In a separate statement, the New York-based carrier also said it would raise $400 million through a convertible notes offering, most of which would be used to refinance the carrier's existing debt.