United shares fell more than 2% in postmarket trading Tuesday after the airline announced it’s planning a fresh stock offering, the latest measure by a carrier to raise money as the coronavirus devastates travel demand.
The Chicago-based carrier said it is planning to sell 39.25 million shares, which would be worth slightly more than $1 billion at Tuesday’s closing price of $27.88.
United’s shares are down nearly 70% this year, and the new offering highlights the lengths airlines are going to to raise money as the pandemic continues to sap revenue.
The airline on Monday disclosed that a $2.1 billion loss in the first quarter of the year, its largest since 2008. The carrier and its competitors are scheduled to report full quarterly earnings in the coming days.
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