American Airlines is selling approximately $1.14 billion in aircraft-backed bonds to bolster its liquidity. The offering utilizes enhanced equipment trust certificates (EETCs) secured by a collateral pool of 32 aircraft. This structure allows the carrier to access higher-quality credit markets despite its sub-investment-grade corporate status.
The bonds are expected to receive investment-grade ratings from S&P and Fitch. This stands in contrast to American’s 'B+' corporate credit rating. The debt issuance follows the airline’s recent decision to lower its 2026 outlook.
Rising fuel costs tied to geopolitical conflicts are currently pressuring the airline's earnings. American Airlines previously cited billions in additional fuel expenses when adjusting its financial forecasts. This strategic move aims to maintain financial flexibility in a challenging cost environment.