With $34 Billion in outstanding debt, it is only a matter of time before American Airlines (ticker: AAL), comes calling hat in hand for a bailout. AAL will require financial aid (a bailout or a very large equity offering), before 2026 debt maturities occur.
The 2020-2021 COVID bailouts were not the answer to the bloated airline industry’s survival. The airline industry is more bloated than Monty Python’s Mr. Creosote.
It appears that AAL will require financial assistance in order to meet its 2026 debt maturities. We say this based upon the below debt schedule. It is likely that a Government bailout is coming, or a significantly dilutive equity event, or both as it relates to AAL.