American Airways stories a web lack of $ 2.four billion within the third quarter
An American Airlines passenger aircraft.
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American Airlines posted another big quarterly loss on Thursday as the coronavirus pandemic weighed on demand for summer travel but the airline cut its money consumption.
Revenue for the three months ended September 30 was down 73% to $ 3.17 billion from $ 11.9 billion a year ago. The airline posted a net loss of $ 2.4 billion in the third quarter after a profit of $ 425 million a year earlier. Without one-time items, American posted a loss per share of $ 5.54, better than analysts expected.
American stocks fell 1.4% ahead of the IPO. The company has approved a stock sale to raise up to $ 1 billion.
The Fort Worth-based American began taking 19,000 employees on leave this month after the terms of a $ 25 billion state aid to the ailing aviation sector expired. Americans have been the loudest in calling on lawmakers and the Trump administration to allocate an additional $ 25 billion to airlines, but no agreement has been reached so far.
Here's how American fared compared to Wall Street's expectations, based on Refinitiv's average estimates:
Adjusted results: a loss of $ 5.54 versus an expected loss of $ 5.86. Revenue: $ 3.17 billion versus $ 2.81 billion expected.
American cut its cash burn in the third quarter from $ 58 million in the previous three-month period to around $ 44 million per day. This figure is expected to drop to between $ 25 million and $ 30 million per day in the fourth quarter. The airline announced that it would postpone delivery of 18 Boeing 737 Max aircraft until 2024.
Also on Thursday, Southwest Airlines posted its biggest quarterly loss of all time, but also reduced its cash burn.