BENGALURU/SYDNEY - American Airlines Group Inc said on Sunday it plans to secure US$3.5 billion in new financing, to improve the airline's liquidity as it grapples with travel restrictions caused by the coronavirus.
The company expects to use the net proceeds from the stock and convertible notes offerings for general corporate purposes and to enhance its liquidity position, the airline added. 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.
The airline owes about A$2 billion total to 6,500 unsecured bondholders, the second-most numerous creditor group behind employees that will vote on a deal at a meeting in August.