American Airlines Flight 718, the first commercial Boeing 737 MAX flight in the US since regulators lifted a 20-month link in November, takes off from Miami, Florida, on December 29, 2020.
Marco Bello | Reuters
American Airlines has authorized the sale of another $ 1 billion in stock, the carrier said in a warehouse on Friday, an effort to support cash as Covid-19 continues to decline travel demand.
The American authorized a $ 1 billion share sale in October and sold $ 882.4 million for $ 12.87 a share. Under the new agreement, it would sell for up to $ 1.12 billion.
The US decision follows a strong rally in the price of its shares earlier this week, after it was mentioned in the popular WallStreetBets Reddit forum. The airline declined to comment on whether the action took into account its decision.
US equities fell nearly 7% in Friday afternoon trading. Other airline stocks were also suddenly lower. The Fort Worth, Texas and Southwest Airlines carrier reported record losses in 2020 on Thursday.