Why Shares of American Airlines Are Falling Today
Shares of American Airlines Group (NASDAQ: AAL) traded down more than 6% as of 12:30 p.m. EDT Monday after the airline said it would raise $3.5 billion in new financing. It will get some of that new capital by diluting existing shareholders, and the stock is taking a hit as a result.
American and other airlines are in survival mode, with demand plummeting due to the COVID-19 pandemic. There have been some indications in recent weeks that travel demand is slowly beginning to creep higher compared to April lows, but it will likely take years for traffic volumes to return to prepandemic levels.
Image source: American Airlines.
Source Fool.com
