Why Shares of American Airlines Are Falling Today
Shares of American Airlines Group (NASDAQ: AAL) traded down 7% at noon EDT on Tuesday after the airline priced new debt and equity offerings, raising $2 billion in additional capital but at a cost to existing shareholders.
American and other airlines have been scrambling to raise cash to weather the pandemic. Travel demand fell by upward of 90% in March and April, and although there are some encouraging signs that demand is beginning to bounce off of that bottom, it will likely take years for traffic to return to pre-pandemic levels.
Image source: American Airlines.
Source Fool.com
