American Airlines is planning a $15bn debt-cutting plan, as per its CFO Devon May. He said, “What you’re going to see from us over the next decade or so is just a more balanced approach to capital”, adding that he is optimistic about their ability to generate sufficient revenue through 2025 to raise its credit rating to BB from B-. The carrier will pay $2.1bn in interest expenses in 2023 at current rates and given its capital structure. It has a $12bn capex program through 2027. Business Times reports that BB rated companies on average pay 7.2% to raise capital in the dollar bond market vs. 8.8% for B rated borrowers.
Its bonds were trading stable with its 5.75% 2029s at 95.54, yielding 6.64%.
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