DALLAS – American Airlines stock rose for struggling companies earlier this week amid market volatility, and now the airline is taking advantage of the opening to sell up to $ 1 billion new shares

American announced Friday that an agreement was reached on the offer with lenders such as Goldman Sachs and Citigroup. Shares fell more than 6% after disclosure by American, which would dilute the value of existing shares

A spokesperson said the company made no further comment at the time of the potential stock sale and would not provide any executives for comment

Retail investors gathering on Reddit have come together to defend companies targeted by short sellers, betting that certain stocks will fall in price, in the most notable case, GameStop’s stocks have been up in the past three weeks more than 1500% increased

American is by far the most heavily discounted stock among the publicly traded Major U.S. Airlines, at 255% of its total shares, according to FactSet Among the Six Biggest US. Airlines, JetBlue Airways is next up 51%

Chester Spatt, professor of finance at Carnegie Mellon, said Americans should tell potential investors that the current market turmoil may inflate the price, but also said it was “natural” for the company to make an offer

“When a company feels that its stock price has increased, it makes sense for a company to issue securities,” said Spatt

Since the beginning of the pandemic that devastated the travel industry, analysts have broadly identified Americans as the hardest hit US Carriers and Most Likely to Eventually Seek Bankruptcy Protection if Travel Remains Depressed Americans went into the pandemic with more debt than other leading U.S. Airlines and has increased its burden by billions more in borrowing from private sources and the federal government

American stocks rose as much as 31% on Thursday before largely abandoning the gain and closing more than 9% The surge came on the same day that American posted a record annual loss of $ 8.9 billion for 2020 and gave a grim outlook for the first quarter of 2021

On Thursday, American CEO Doug Parker began a call to analysts and reporters saying the company would not answer questions about the unusual movement in its share price

American Airlines Share

World News – FI – American Airlines will issue new shares after the share price rises

Source: https://abcnews.go.com/Business/wireStory/american-airlines-set-issue-stock-price-run-75569791