American Airlines has raised $1.14 billion by issuing bonds backed by 32 aircraft from its fleet, tapping into a financing strategy that leverages its own planes as collateral. The funds will support new aircraft purchases, refinance existing debt, and meet general corporate needs.
The airline used enhanced equipment trust certificates (EETCs), a form of secured debt that allows carriers to borrow at lower interest rates by pledging aircraft to investors. This approach has become a common tool for airlines seeking cost-effective financing despite weaker credit ratings.
The move comes as the carrier faces rising financial pressure from soaring jet fuel prices linked to tensions involving Iran. The airline recently warned it may post a net loss in 2026, expecting to absorb over $4 billion in additional fuel costs.
This is not the first time American has used such a strategy. In October 2025, the airline raised around $1.1 billion through a similar bond sale backed by 25 aircraft, highlighting its continued reliance on asset-backed financing.