European Investor
13 Nov 2025, 15:30
American Airlines secures 1.1 billion dollars in aircraft financing through new pass-through trust structure
American Airlines entered into a major financing agreement on November 12, 2025, enabling the future issuance of 1.10 billion dollars in equipment notes to fund deliveries of 25 new aircraft scheduled through early 2026. The notes will be secured by a mix of Boeing 737 MAX 8, Boeing 787-9, Airbus A321-XLR and Embraer 175 aircraft.
The financing structure uses Class A and Class B Pass Through Certificates, sold to investors on October 28, with proceeds now held in escrow until aircraft are delivered and the equipment notes are issued. Series A notes will carry interest of 4.900 percent, while Series B notes will carry 5.650 percent, with maturities through 2038 for Series A and 2034 for Series B.
The funds remain deposited with Sumitomo Mitsui Banking Corporation and are supported by liquidity facilities from Natixis covering three semiannual interest payments for each class.
Payments on the notes will begin on May 11, 2026. The notes will be secured by liens on each aircraft and cross-collateralized across the full pool, with acceleration provisions in the event of default or bankruptcy.
American Airlines entered into a major financing agreement on November 12, 2025, enabling the future issuance of 1.10 billion dollars in equipment notes to fund deliveries of 25 new aircraft scheduled through early 2026. The notes will be secured by a mix of Boeing 737 MAX 8, Boeing 787-9, Airbus A321-XLR and Embraer 175 aircraft.
The financing structure uses Class A and Class B Pass Through Certificates, sold to investors on October 28, with proceeds now held in escrow until aircraft are delivered and the equipment notes are issued. Series A notes will carry interest of 4.900 percent, while Series B notes will carry 5.650 percent, with maturities through 2038 for Series A and 2034 for Series B.
The funds remain deposited with Sumitomo Mitsui Banking Corporation and are supported by liquidity facilities from Natixis covering three semiannual interest payments for each class.
Payments on the notes will begin on May 11, 2026. The notes will be secured by liens on each aircraft and cross-collateralized across the full pool, with acceleration provisions in the event of default or bankruptcy.
