Airlines continue to get lifted; Avis on the rise; Hertz forbearance deadline looms

By Abigail W. Adams

Portland, Me., May 20 – Airlines remained in focus in the distressed debt space and continued to get lifted as optimism grows about a return to operations.

United Airlines Holdings Inc.’s, Delta Air Lines Inc.’s and American Airlines Group Inc.’s senior notes continued their upward momentum on Wednesday.

The optimism surrounding an uptick in travel-related demand also helped lift Avis Budget Group, Inc.’s senior notes.

However, Hertz Global Holdings, Inc.’s senior notes continued to struggle as the forbearance deadline lenders granted the company looms.

Airlines continued their upward momentum on Wednesday with several names staging a spectacular rebound on the week.

Among them, United Airlines’ 4 7/8% senior notes due 2025 gained 4 ½ points to close Wednesday at 64, a market source said.

The notes were up more than 13 points on the week.

United’s 4¼% senior notes due 2022 gained 3½ points to close the day at 74. The notes also rose more than 13 points on the week.

Meanwhile, in the car rental space, Avis’ 5¼% senior notes due 2025 gained almost 7 points to 66 on Wednesday.

The car rental company’s 5¾% senior notes due 2027 were up 5¼ point to 64.

An uptick in air travel would also mean an uptick in car rentals, a source said.

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