American Airlines seeks to raise US$1.5b in stock, convertible notes sale

FILE PHOTO: American Airlines planes are parked at the gate at Ronald Reagan National Airport in Washington, DC.

NEW YORK: American Airlines Group Inc is planning to raise around US$1.5 billion by selling shares and convertible notes, as the airline shores up liquidity after travel disruption due to coronavirus, Bloomberg News reported on Sunday (Jun 21).

The airline could announce the offering as early as Sunday, the report said, citing people familiar with the matter.

Discussions are ongoing, and the timing and details of any deal could change, the report added, citing the people asking not to be identified as the information is private.

American Airlines declined to comment.

American Airlines and Delta Air Lines Inc said last week that a modest recovery in demand was helping to slow daily cash burn rates in June after the US government reported record low passenger numbers in April amid the coronavirus pandemic.

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