American Airlines burning $70M a day – Idaho Reporter

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American Airlines burning $70M a day

American Airlines Group Inc. (NASDAQ: AAL) today reported its first-quarter 2020 financial results.

The key takeaways from this Q1 2020 financial report are:

  1. American’s average estimated second-quarter 2020 cash burn rate is expected to be approximately $70 million per day
  2. AAL expects to have approximately $11 billion of liquidity at the end of the second quarter.
  3. In cost cutting move AAL accelerated the retirement of four aircraft types, consisting of 20 Embraer 190s, 34 Boeing 757s, 17 Boeing 767s and nine Airbus A330-300

“Never before has our airline, or our industry, faced such a significant challenge,” said American Airlines Chairman and CEO Doug Parker. “True to fashion, the American Airlines team has done a phenomenal job taking care of our customers and each other during such difficult and often heartbreaking times. We are incredibly proud of their selflessness and dedication to others.

“We have moved quickly and aggressively to reduce our costs and bolster our liquidity,” Parker continued. “We are particularly grateful for the $5.8 billion in financial assistance American will receive through the Payroll Support Program, and we appreciate the bipartisan congressional and U.S. Department of the Treasury and Department of Transportation support to protect airline jobs and ensure a strong and competitive U.S. airline industry.

“We have a lot of difficult work ahead of us. And while there is still uncertainty in what’s to come, we are confident that through the dedication of the American Airlines team and our swift actions, we will get through this for our team, our customers and our shareholders.”

For earnings call (today at 7:30 a.m. CDT) head over to AAL and register.

American Airlines Group Inc (NASDAQ: AAL) stock price closed at $12.63 on Wednesday and it is is down 5% on Thursday afternoon.

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