American Airlines plans another $1 billion stock sale after big rally
American Airlines Flight 718, the first US Boeing 737 MAX commercial flight since regulators lifted a 20-month primer in November, will take off from Miami, Florida on December 29, 2020.
Marco Bello | Reuters
American Airlines approved the sale of an additional $ 1 billion worth of shares, the airline said in a report filed Friday, to prop up cash as Covid-19 continues to depress demand for travel.
American approved a $ 1 billion stock sale in October and sold $ 882.4 million at $ 12.87 per share. Under the new deal, it would sell up to $ 1.12 billion.
The American decision follows a sharp price rally earlier this week after being featured on the popular WallStreetBets Reddit forum. The airline declined to comment on whether the stock movement was taken into account in its decision. The airline is the most short-circuited US airline.
American stocks fell more than 5% to $ 17.17 on Friday but ended the week 8.5%. Other airline stocks fell this week.
American and Southwest Airlines each reported record losses for 2020 on Thursday. US airlines lost around $ 34 billion last year.