American Airlines lost $ 2.07 billion to COVID-19

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The pandemic caused the airline’s revenue to drop by 86% in the second quarter of 2020.

American Airlines suffered an 86% drop in revenue and a net loss of $ 2.07 billion in the second quarter of the year due to the reduction in flights caused by the pandemic, the company said in a statement Thursday.

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The airline claimed that demand for flights, which began to recover in May and June, weakened again in July due to the explosion of new cases of COVID-19 in the United States and the new restrictions imposed.

“This was one of the most challenging quarters in the history of the United States. We have moved quickly to improve our liquidity, save cash and ensure that clients are safe when they travel,” said company chief executive Doug Parker.

After taking various savings measures, such as the retirement of four types of aircraft and offering voluntary licenses for thousands of employees, American Airlines reduced its daily spending from $ 100 million in April to around $ 30 million.

The company warned last week that up to 25,000 workers could be laid off as of October 1.

Like other companies, American Airlines offers its employees early retirements and voluntary departures to reduce layoffs.

The airline said it expects third-quarter business volume to drop about 60% from a year earlier.

The shares rose 1.2% percent to $ 11.5 in trades prior to the stock market opening.

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