FORT WORTH— American Airlines (AA) has moved to strengthen its financial position by launching a $1.1 Billion aircraft-backed financing deal tied to a portfolio of 32 Airbus and Boeing jets.
The transaction, structured through enhanced equipment trust certificates (EETCs), marks the carrier’s first such issuance in 2026 and reflects continued reliance on fleet assets to raise liquidity.
The airline plans to use proceeds from the 2026-1 notes to refinance existing obligations and support broader corporate needs.
This approach comes as US carriers navigate rising operating costs, particularly fuel, while maintaining network capacity and fleet modernization efforts.
American Airlines Unlocks $1.1 Billion EETC
American’s 2026-1 EETC transaction is divided into two tranches, offering different risk and maturity profiles to investors.
The larger Class A tranche totals $905 million and carries a maturity date of 2038, while the Class B tranche amounts to $235.8 million and matures in 2035.
The financing structure includes loan-to-value ratios starting at 59.5% and rising to a maximum of 75%, reflecting the underlying asset strength of the aircraft pool.
Credit rating agencies have assigned investment-grade ratings to both tranches, indicating confidence in the collateral and repayment structure.
The airline also retains the flexibility to introduce an additional subordinate Class C tranche in the future. This option could provide incremental liquidity depending on market conditions and funding needs.
Aircraft Collateral
The collateral pool backing the transaction includes a mix of modern and mid-life aircraft valued at approximately $1.5 billion.
It features six Airbus A321XLR aircraft scheduled for delivery between mid-2025 and mid-2026, supporting long-range narrowbody expansion.
The portfolio also includes 12 Airbus A321ceo aircraft delivered between 2013 and 2015, along with 11 Boeing 737 MAX 8 jets delivered in early 2026. In addition, three Boeing 777-300ER widebody aircraft from 2013 form part of the asset base.
This diversified mix balances newer, fuel-efficient aircraft with established widebody assets. It enhances investor confidence while allowing American to leverage both growth-oriented and legacy fleet components.
American’s Debt And Costs
The financing comes at a time when American faces significant financial pressure from rising fuel prices. The airline expects a year-on-year increase of approximately $4 billion in second-quarter fuel expenses, driven by global oil market volatility.
Despite strong passenger demand and fare adjustments, higher fuel costs continue to strain profitability and slow debt reduction efforts. Industry analysts note that American holds the highest debt burden among major US airlines, with $39.4 billion in long-term debt and liabilities as of March, Flight Global flagged.
Company executives maintain that recent balance sheet improvements provide flexibility to manage current challenges. The airline reported a first-quarter loss but continues to project profitability for the full year, supported by sustained travel demand.
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