American Airlines seeks U.S. credit and postpones delivery of 737 Max aircraft.
American Airlines Group is considering whether to apply for a larger loan from the U.S. Treasury as the company seeks to shore up its balance sheet to withstand the coronavirus pandemic. The airline is also in talks to delay delivery of 18 Boeing Co. 737 Max aircraft, its chief financial officer, Derek Kerr, said Wednesday at a Cowen & Co. conference. Postponing receipt of those planes, which will be shipped next year and in 2022, would delay payments on deliveries.
See also: American Airlines would lay off 19,000 employees in October if government aid is not extended.
The measures highlight the financial pressure on American as the company looks for ways to resist an unprecedented collapse of the travel industry caused by the pandemic. While American has seen “a gradual improvement in demand,” it is too early to say whether the increase is sustainable, company President Robert Isom said at the Cowen conference.
American fell 4.1 percent to $13.07 at 11:15 a.m. in New York, the largest decline in the Standard & Poor’s index of major U.S. airlines. Boeing dropped 1.4% to US$158.80.
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