American Airlines Group Inc. AAL,
recorded a large loss for the second quarter, as the trips were decimated by the coronavirus pandemic. The operator said it had a net loss of $ 2,067 billion, or $ 4.82 per share, in the quarter, after revenue of $ 662 million, or $ 1.49 per share, in the prior year period. His adjusted loss per share hit $ 7.82, slightly better than the FactSet consensus loss-per-share forecast of $ 7.84. Revenue fell 86% to $ 1,622 billion from $ 11.960 billion, before the FactSet consensus of $ 1.437 billion. “This was one of the most challenging neighborhoods in the history of the United States,” CEO Doug Parker said in a statement. “COVID-19 and the resulting shutdown of the United States economy have caused serious disruptions to global demand for air travel.” The airline ended the quarter with $ 10.2 billion in available liquidity, after receiving bailout funds from the United States government and issuing $ 1.2 billion of debt. Capital spending in 2020 is expected to be reduced by more than $ 15 billion, primarily due to cost cuts resulting from fewer flights. “Passenger demand and load factors have improved since bottoming out in April, but continue to be significantly below 2019 levels,” the airline said. “While the revenue trends for May and June were encouraging, demand has weakened somewhat during July as COVID-19 cases increased and new travel restrictions were put in place.” The company expects third quarter system capacity to decrease approximately 60% compared to the prior year period. Shares were up 2% pre-market, but down 60% in the year to date, while JETS ETFs US JETS
it’s down 48% and the S&P 500 SPX,
It has gained 1.4%.
.
