The planes are parked on runway 28 of the Pittsburgh International Airport on March 27, 2020 in Pittsburgh, Pennsylvania.
Jeff Swensen | Getty Imageas
American Airlines on Thursday posted a net loss of $ 2.1 billion in the second quarter, the latest airline to describe financial damage to demand for the coronavirus pandemic travel.
Revenue fell more than 86% in the quarter to $ 1.6 billion from about $ 12 billion the year before.
The stock rose 0.5% in premarket trading.
American has restored more capacity than some of its major competitors, such as Delta or United, as its goal was to capitalize on an increase in air travel demand that reached its limit in April.
The Fort Worth, Texas-based airline lowered its daily cash burn rate from $ 100 million per day in April to $ 30 million per day in June after it cut idle flights and planes and thousands of employees voluntarily took time off. .
“We have moved quickly to improve our liquidity, conserve cash and ensure that clients are safe when they travel,” said CEO Doug Parker. “There is a lot of uncertainty ahead, but we remain confident that we will emerge from this crisis more agile and more efficient than ever.”
US and other airline executives warn that demand has softened due to an increase in coronavirus cases and restrictions on foreign travel and quarantine orders. American said it expects capacity in the third quarter to drop 60% from last year.
The pandemic has been particularly painful for airlines due to a resurgence in cases during what is normally the most lucrative time of the year, the peak summer travel season.
“The current environment is more unpredictable and more volatile than anything we could have imagined,” Parker and airline president Robert Isom said in a note to employees.
On an adjusted per share basis, American posted a loss of $ 7.82, slightly more than analysts expected.
American Airlines executives will make an analyst call at 8:30 am EDT.
Also Thursday, Southwest Airlines said it lost $ 915 million in the second quarter compared to $ 741 million in net income the previous year. He also warned that demand for travel will likely remain depressed until there is a vaccine or treatment for coronavirus.
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