Securities filings show that American Airlines has launched a two-part debt offering totaling $1.14 billion, with the money slated for a combination of aircraft purchases, loan refinancing, and general corporate purposes.
The deal uses a financing structure called enhanced equipment trust certificates, which give carriers rated below investment grade access to lower borrowing costs typically reserved for higher-quality issuers. Despite carrying an overall B+ corporate credit rating from S&P Global Ratings, American obtained an ‘A’ grade on the larger tranche and a ‘BBB’ on the smaller one through the EETC structure.
The larger tranche — worth $905 million — carries the ‘A’ designation and is being discussed at a yield of about 5.625%, according to Bloomberg. The smaller tranche is valued at $235.8 million. Together, the securities are collateralized by 32 new and existing American Airlines planes. Goldman Sachs, MUFG, and Morgan Stanley are serving as bookrunners for the sale, according to Bloomberg.
A prior EETC deal American closed last October featured a $883.63 million note tranche that came to market at a 4.9% yield, according to Bloomberg.
The bond sale comes as American and other U.S. carriers absorb sharply higher fuel costs stemming from the war in Iran. Last week the carrier disclosed that it anticipates roughly $4 billion in additional fuel expenditures over the course of 2026, with per-gallon prices hovering around $4 through at least the second quarter. The airline lowered its full-year earnings target and said it may end 2026 with a loss.
Earlier this year, American and Delta Air Lines each raised their first-quarter revenue forecasts as demand accelerated into March, more than offsetting roughly $400 million in fuel cost increases at each carrier. American said its revised first-quarter revenue growth figure represented the highest year-over-year quarterly revenue growth in its history.
