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American Airlines said it may tap debt markets as early as next quarter to boost liquidity if elevated fuel prices persist, with options including monetizing assets such as its aircraft fleet and loyalty program. The airline has seen a spike of $400mn in fuel costs so far this month, impacting its bottom line. The company is also considering accelerating planned Q3 financing to meet incremental funding needs. The airline reduced its debt from over $50bn during the pandemic to about $36bn and maintains roughly $10bn in liquidity.
While competitors like United Airlines are cutting capacity, American Airlines is not planning reductions yet, but relying instead on its liquidity buffer. Analysts note that the airline continues to lag behind rivals like Delta and United in profitability and market value, prompting efforts to improve margins through premium offerings and fleet upgrades. As part of its strategy, American is also evaluating new widebody aircraft orders from Boeing and Airbus to support long-term growth.
It’s 3.375% 2027s were stable at 98.8, yielding 4.59%
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