American Airlines became the latest US carrier to report a hefty second-quarter loss, but said it made progress in reducing cash burn, according to results released Thursday.
The company suffered a $2.1 billion loss in the quarter ending June 30, compared with profits of $662 million in the year-ago period.
American Airlines revenues plunged 86.4 percent to $1.6 billion behind a steep drop in customer traffic.
“This was one of the most challenging quarters in American’s history,” said Chief Executive Doug Parker. “We have moved swiftly to improve our liquidity, conserve cash, and ensure customers are safe when they travel.”
Following cost-saving moves such as retiring four aircraft types and voluntary leave for thousands of employees, American reduced its daily cash burn rate from nearly $100 million in April to around $30 million in June.
American warned last week that up to 25,000 workers could be laid off beginning October 1. Like other carriers, it is encouraging employees to take early retirement or another voluntary exit in an effort to reduce layoffs.
The company said that while passenger demand has improved somewhat since April, “demand has weakened somewhat during July as COVID-19 cases have increased and new travel restrictions have been put into place.”
American said it expects third-quarter capacity to be down around 60 percent from the year-ago level.
Shares rose 1.2 per cent to $11.50 in pre-market trading.