American Airlines Group Inc. has amended its credit agreement, securing new term loans totaling $1.85 billion. The company refinanced $1,146.8 million in existing term loans and obtained $703.2 million in incremental term loans. Total debt stands at $34.9 billion.
The new loans bear interest at either the base rate (with a 0.00% floor) plus a 2.00% margin per year, or the three-month SOFR (with a 0.00% floor) plus a 3.00% margin per year. The maturity date is May 29, 2033, with annual repayments of 1% of the principal.
Despite rising fuel costs, American Airlines maintains its full-year profit outlook. CEO Robert Isom noted demand growth across all income groups. The airline plans to install Starlink Wi-Fi on over 500 narrowbody aircraft starting Q1 2027.
