American Airlines Secures $1.14 Billion in Financing with 32 Aircraft as Collateral
American Airlines has secured a $1.14 billion bond offering by pledging 32 aircraft as collateral, allowing the company to access more favorable financing terms despite its low credit rating. The move comes as the airline faces rising fuel costs and a revised earnings outlook, with its stock down 24% this year. The financing structure, known as EETCs, allows the bonds to receive higher credit ratings than the company itself.
Topics: aircraft collateral airline financing bond offering credit ratings earnings outlook fuel costs