United Airlines reopens key aircraft financing market as new deliveries surge

United Airlines reopened the capital markets for airline debt on Monday when it raised more than $1b to finance 39 new Boeing aircraft in its fleet. The Chicago-based carrier priced the $1.32b single-tranche secured notes, known as enhanced equipment trust certificates (EETC), that mature in 2037 with a 5.8% coupon. Proceeds will finance 22 737-8s and 17 737-9s that United took delivery of between August 2022 and May 2023. The deal was not upsized, nor was the collateral pool expanded, between launch and pricing. United’s return to the debt capital markets signals a shift back towards normal aircraft financing after the disruption of the pandemic. That’s good news, both for airlines and investors, considering the thousands of new planes on order globally for delivery over the next few years. It comes as the airline industry braces for what could be a historic summer. Trade group Airlines for America (A4A) forecasts a nearly 1% increase in passenger numbers over the last peak in 2019. And, at the IATA annual meeting earlier in June, industry leaders repeatedly said travel demand was robust through at least the fall. “If we’re in the middle of a recession, this is the best recession the airline industry has ever seen,” United CCO Andrew Nocella said at the IATA event.<br/>