United Airlines Offer Millions of Shares to Keep Afloat Amid Crisis

New York (dpa) - Struggling US carrier United Airlines Tuesday announced an underwritten public offering of 39.25 million new shares in a bid to raise fresh revenue amid the coronavirus crisis.

The shares could bring in an estimated 1 billion dollars to the airline, which has suffered due to travel restrictions.

The funds will be used for "general corporate purposes", United Airlines said in a statement.

The company also granted acting underwriters Morgan Stanley and Barclays a 30-day option to purchase up to 3,925,000 additional shares.

The capital increase was not well received by investors sending United's shares further downward. The company's stocks have fallen by almost 70 per cent since January.

The US government has pledged to help the embattled airline through the crisis with grants and loans worth 5 billion dollars from a 2.2-trillion-dollar Congressional stimulus package, however, the situation remains difficult.

United anticipates a loss of 2.1 billion dollars before tax for the first quarter, according to Forbes.

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