American Airlines posts $2.2 billion loss on the pandemic, first since bankruptcy exit
American Airlines (AAL.O) on Thursday posted a $2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, and warned of a roughly $70 million per day cash burn in the second quarter as the coronavirus pandemic halts travel.
Shares fell 4.3% before the bell. Airlines - among the sectors hardest-hit by the pandemic - have grounded jets, canceled flights and suspended dividends, and share buybacks among measures to shore up cash. “Never before has our airline, or our industry, faced such a significant challenge,” Chief Executive Doug Parker said in a statement. The U.S. airline swung to a net loss of $2.2 billion in the first quarter to March 31 from a $185 million profit a year earlier. Excluding items, the net loss was $1.1 billion, or $2.65 per share, below analyst estimates of a $2.33 per share loss, according to IBES data from Refinitiv.
Total operating revenue declined by nearly 20% to $8.5 billion. The pandemic ended one of the longest expansion in U.S. history, with the nation’s economy contracting at its sharpest pace since the Great Recession in the first quarter. Airline executives have warned that demand may not recover to 2019 levels for years.
30 April 2020