As expected, American Airlines did not produce good quarterly figures today. The flight cancellations due to the coronavirus pandemic have left the US airline deep in the red.
“This was one of the most challenging quarters in American’s history,”American Airlines Chairman and CEO Doug Parker
The bottom line was a loss of nearly $ 2.1 billion after a profit of $ 662 million a year earlier. Airline chief Doug Parker spoke of one of the most difficult quarter in American history.
Because the number of passengers fell 86% year-on-year to less than 5.5 million, revenue plummeted to $ 1.6 billion. In contrast, operating costs only fell by 62 percent. To ensure its survival, the company raised $ 3.6 billion in fresh money, including new shares, convertible bonds, and regular bonds. At the end of the quarter, the company’s cash was at $ 10.2 billion, the airline said. In the third quarter, $4.75 billion in government-backed grants are expected to be added.
As the situation in the airline industry is still precarious and has even deteriorated again recently due to the renewed corona escalation in the USA, a wave of layoffs threatens in autumn.
On the other side Wall Street seems not to care too much about these numbers and American Airline (AAL) stock went up almost 4% on Thursday. Another major airliner, United Airlines (NASDAQ:UAL) gained almost 5% today.