MIAMI – American Airlines (AA) announced via a press release the repayment of US$2.8bn of debt using various revolving credit facilities.
The airline, which had an industry-topping US$41bn worth of debt and lost US$8.9bn last year, said it repaid the outstanding debt it took out in April 2020 as the airlines were scrambling to get as much cash as they could before lenders shut them out from borrowing.
American Airlines was additionally able to repay the US$10bn government loan from the CARES earlier this month using money borrowed from the private market at a lower rate. 18 lending institutions were used for the revolving credit facilities.
The carrier will be 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, which all will in October 2024. By repaying the revolving credit facilities, AA’s total outstanding debt is reduced by US$2.8bn.
American Airline’s total available liquidity including cash and readily available access to cash is unchanged.
Comments from American Airlines CFO
“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,” said American Airlines chief financial officer Derek Kerr in a statement.
“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.”
Featured image: Luke Ayers/Airways