American Airlines Flight 718, the first commercial Boeing 737 MAX flight in the United States since regulators withdrew for 20 months in November, takes off from Miami, Florida, on December 29, 2020
Marco Bello | Reuters
American Airlines authorized the sale of another $ 1 billion in shares, the airline reported in a presentation Friday, an effort to bolster cash as the Covid-19 continues to depress travel demand.
American authorized a $ 1 billion share sale in October and sold $ 882.4 million at $ 12.87 per share. Under the new deal, it would sell for up to $ 1.12 billion.
The US decision comes amid a sharp rise in the share price earlier this week after it was mentioned on WallStreetBets ’popular RedSit forum. The airline declined to comment on whether the actions were included in its decision.
US stocks fell nearly 7% in Friday afternoon trading. Other airline stocks were also much lower. The Fort Worth, Texas-based carrier and Southwest Airlines recorded record losses in 2020 on Thursday.