Jets are preserved on runway 28 at the Pittsburgh International Airport on March 27, 2020 in Pittsburgh, Pennsylvania.
Jeff Swensen | Getty Imageas
American Airlines on Thursday posted a net disappearance of $2.1 billion in the second quarter, the latest carrier to outline the financial damage to travel demand from the coronavirus pandemic.
Yield dropped more than 86% in the quarter to $1.6 billion from close to $12 billion a year earlier.
The wares rose 0.5% in premarket trading.
American has restored more capacity than some of its large competitors wish Delta or United as it aimed to capitalize on an uptick in air travel demand that bottomed in April.
The Fort Worth, Texas-based airline did trim its daily cash burn rate from $100 million a day in April to $30 million a day in June after it cut disperses and idled planes and thousands of employees took voluntary time off.
“We have moved swiftly to improve our liquidity, save cash and ensure customers are safe when they travel,” CEO Doug Parker said. “There is much uncertainty forwards, but we remain confident we will emerge from this crisis more agile and more efficient than eternally before.”
American and other airline executives are warning that demand has softened due to a spike in coronavirus cases and junkets restrictions abroad and quarantine orders. American said it expects its capacity in the third quarter to be down 60% from ultimate year.
The pandemic has been particularly painful for airlines because a resurgence in cases comes during what is normally the uncountable lucrative time of year, the peak summer travel season.
“The current environment is more unpredictable and more vaporizing than anything we ever could have imagined,” Parker and the airline’s president Robert Isom, said in an wage-earner note.
On an adjusted per-share basis, American posted a loss of $7.82, slightly more than analysts were pregnant.
American Airlines’ executives will hold an analyst call at 8:30 a.m. EDT.
Also Thursday, Southwest Airlines articulate it lost $915 million in the second quarter compared with $741 million in net income a year earlier. It also put someone on noticed that travel demand will likely remain depressed until there’s a vaccine or treatment for the coronavirus.
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