The largest US airline by number of passengers had a 55% drop in its biannual operating turnover, which amounted to US $ 10,137 million, despite a certain “improvement” in passenger demand in May and June after ” hit bottom “in April, it said in a statement.
The second quarter of the year “has been one of the most complicated in the history” of American Airlines, the company’s chief executive, Doug Parker, was quoted in the note, highlighting his efforts to “increase liquidity, conserve cash and guarantee that customers travel safely. “
Between April and June, the large corporate based in West Worth (Texas) deepened the bad results of the first quarter and lost US $ 2,067 million, compared to the US $ 662 million of earnings it had posted in the same stretch of 2019.
The income of these last three months experienced a sharp drop to US $ 1,622 million, which is 86.4% less than the almost US $ 12,000 million obtained in the second quarter of the previous year.
“Although the billing trends for May and June were encouraging , demand has weakened during July as COVID-19 cases increased and new travel restrictions were imposed,” added the firm, which in the current third quarter expects a decrease in capacity of 60% year-on-year.
The airline ended June with liquidity of $ 10.2 billion after receiving a loan of $ 4.75 billion from the US Government, which offered help to this sector to keep it afloat, and issue debt worth $ 1.2 billion.
American Airlines burned an average of $ 55 million a day during the second quarter and managed to reduce that rate from $ 100 million in April to $ 30 million in June thanks to “higher-than-estimated billing and savings from cost cutting. “
In this sense, it expects to reduce its expenses by US $ 15,000 million for the whole of 2020, mainly due to the closure of flights and routes, but also due to the withdrawal of 150 aircraft and the early retirement, reduction of hours or partially paid leave of 41,000 employees, in addition to the reduction of 5,100 management positions.
Still, American says there are “about 20,000 more workers on staff than it needs to run its fall schedule,” suggesting there will be more layoffs or suspensions.
The data was released before the opening of the New York Stock Exchange and the shares of American Airlines, which are listed in the Dow Jones group of Industrials, rose nearly 1% in electronic futures trading, in a good first reaction from the investors.
Since the beginning of the year the airline has lost 60% of its market value.