AMERICAN AIRLINES’ (AA) parent company AMR has raised $2.9bn (£.bn) as it struggles to weather the financial storm.
The fundraising, which comes as part of an arrangement with General Electric and Citigroup, is intended to help the carrier cope with a fall off in demand for air travel.
The company said $1bn of the figure had come from advance sales of frequent flyer miles to Citigroup, while the remaining cash was raised via a sale and a leaseback arrangement with the aviation division of General Electric.
Citi rewards customers for making purchases with the bank’s AAdvantage cards by giving them air miles.
“Today’s announcement positions our company well to face today’s industry challenges and allows us to remain focused on returning to profitability,” Gerard Arpey, American’s chief executive, said.