FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL) (the “Company”) and its subsidiary, American Airlines, Inc. (“American”), today announced that they have repaid in full $2.8 billion of revolving loans, in the aggregate, under three separate revolving credit facilities in a liquidity-neutral transaction. American borrowed the $2.8 billion in April 2020 in response to the coronavirus (COVID-19) pandemic and its impact on the demand for air travel.
The revolving credit facilities are supported by 18 lending institutions. American is able to draw upon the revolving commitments again or leave them undrawn as needed upon the terms of the underlying credit agreements until such commitments expire, substantially all of which is currently scheduled to occur in October 2024. By repaying the revolving credit facilities, American’s total outstanding debt is reduced by $2.8 billion, but its total available liquidity — both cash and readily available access to cash — is unchanged.
“Since the beginning of the pandemic, American has had incredible support from the public markets and all of our banking partners,” said American’s Chief Financial Officer Derek Kerr. “Our industry still has a long way to go until we are well, but we have now raised enough additional liquidity that we are comfortable repaying this debt. We are grateful to our banking partners for their ongoing support and we remain committed to rewarding their confidence in American with solid returns on their investments.”
About American Airlines Group
American’s purpose is to care for people on life’s journey. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.
UPDATE 1-American Airlines sees first positive cash build since pandemic began Tue, July 13, 2021, 2:49 PM·1 min read In this article:
AAL -3.93%
(Adds details on cash build rate, share move)
July 13 (Reuters) - American Airlines said on Tuesday it expects its average daily cash build rate for the second quarter to be about $1 million per day, the first positive quarter since the beginning of the COVID-19 pandemic.
Early in the pandemic, the airline said it was burning about $100 million a day. American expects to end the second quarter with about $21.3 billion in total available liquidity. (https://bit.ly/3wD1gfR)
U.S. air travel demand has been rising steadily for months as more Americans get vaccinated and travel restrictions ease.
Shares rose 1% to $20.21 in extended trade as the company said it expects to report a quarterly net loss of between $1.1 billion and $1.2 billion, excluding net special items.
"While that is certainly a large loss, it is our smallest such loss since the start of the pandemic," Chief Executive Officer Doug Parker said in a letter.
Analysts on average estimated a loss of $1.53 billion in the second quarter, according to Refinitiv data.
Shares of American Airlines (NASDAQ: AAL) are trading about 3.5% higher in pre-market Thursday after the company reported preliminary earnings for the fourth quarter that crushed analyst expectations.
American expects to report adjusted EPS of $1.12 to $1.17, smashing the consensus for earnings of $0.60 per share and its prior guidance of $0.50-0.70. Revenue is expected to increase by 16-17% compared to Q4 2014, which is higher than the company’s prior guidance of up 11% to 13%.
AAL also said it flew 66.0 billion total available seat miles. This represents a 6.1% decrease versus Q4 2019 and is in line with the 5-7% decrease that American was expecting. Total revenue per available seat mile (TRASM) is expected to be up approximately 24% relative to Q4 2019, higher than the previous guidance of up 18% to 20%.
“The Company expects to end the fourth quarter with approximately $12 billion in total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other credit facilities,” American added in a business update.
Finally, the company said it has achieved more than half of its goal to reduce total debt by $15B by the end of 2025, with total debt down more than $7.5B in the first 18 months of the program.
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