American Airlines posts loss, burns less money than expected

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American Airlines Group (AAL) – Get the report from American Airlines Group, Inc. swung to a better-than-expected second quarter loss on an 86% drop in revenue.

The Fort Worth, Texas carrier reported an adjusted net loss of $ 3.4 billion, or $ 7.82 per share. Analysts polled by FactSet had expected a loss of $ 7.84 per share for the period.

Revenue for the quarter fell 86% to $ 1.62 billion. The FactSet survey called for a consensus estimate of $ 1.44 billion.

“This has been one of the most difficult quarters in American history,” Chairman and CEO Doug Parker said in a statement.

“Covid-19 and the resulting shutdown of the US economy have caused serious disruption to global demand for air travel. “

Better than expected results follow those of United Airlines Holdings. On Tuesday, the Chicago-based carrier reported “the toughest financial quarter in its 94-year history,” dropping to a second-quarter loss of $ 1.63 billion from a previous year’s profit on 87% lower income.

American Air said an average daily cash consumption rate of $ 55 million in the quarter, higher than the $ 70 million per day it had forecast.

Three weeks ago, American said it reduced its daily cash consumption to less than $ 35 million per day in June, from $ 100 million per day in April.

The airline ended the quarter with about $ 10.2 billion in cash on hand. An additional loan terms sheet signed by the Treasury Department for $ 4.75 billion is expected to be closed in the third quarter.

“We acted quickly to improve our cash flow, save money and keep customers safe when they travel,” Parker said.

“There are a lot of uncertainties ahead, but we remain confident that we will emerge from this crisis more agile and efficient than ever.”

Earlier this month, American said it was overstaffing 20,000 employees for the fall schedule.

However, U.S. carriers are prohibited from laying off or reducing staff pay rates until September under funding terms they received from the U.S. Treasury.

At last check, American Airlines shares were up 0.6% to $ 11.43.


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