American Airlines notes rise despite posting loss; Hertz paper eyed in travel space

By James McCandless

San Antonio, Oct. 22 – The distressed debt space entered the second half of the week with a focus on travel names.

American Airlines Group, Inc.’s notes rose despite the company reporting a loss for the third quarter.

The 5% senior notes due 2022 improved by 2¾ points to close at 72 bid. The 11¾% senior notes due 2025 grabbed 1¼ points to close at 101 bid.

The gains came for the Fort Worth-based airline despite showing $2.4 billion loss in the third quarter.

The company reported a loss per share of $5.54, which was better than what analysts expected at $5.62 per share.

Reported revenues also outpaced expectations, though were worse year over year, at about $3.17 billion.

Meanwhile, vehicle rental name Hertz Global Holdings, Inc.’s paper varied in direction after announcing the closure of its car sales locations.

The 6¼% senior notes due 2022 shed ½ point to close at 41½ bid. The 5½% senior paper due 2024 picked up ¼ point to close at 43 bid.

On Wednesday, news broke that the Estero, Fla.-based car rental services provider has closed all 75 of its U.S. car sales locations.

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