$ 1.3 billion loss in first quarter

© American Airlines

Like all airlines, American Airlines has been hit hard by the fall in air ticket sales since the outbreak began. The company has projected a net loss of $ 1.2 billion to $ 1.3 billion in the first quarter of 2021. Therefore, its revenue is expected to decline by 62% compared to the first quarter of 2019, which is in line with the company’s forecasts that expected revenue will fall by 60% to 75%. The company said the loss would have been even greater had it not been for the $ 2.1 billion in aid to pay workers. It will release its final results on April 22, 2021.

Significant improvement in March

American Airlines is expected to reduce its money-burning rate from $ 30 million in the fourth quarter of 2020 to an average of about $ 27 million per day per quarter. With the resumption of air traffic, however, vaccinations and spring break campaigns the company notes that the situation improved significantly in March: it burned more than $ 4 million a day this month.

American Airlines says the company’s cash flow has returned to positive territory, with the exception of some loan repayments and payments to employees ($ 8 million per day).

See also  Denmark and Iceland were removed from the isolated list of four countries

You May Also Like

About the Author: Cory Weinberg

"Alcohol evangelist. Devoted twitter guru. Lifelong coffee expert. Music nerd."

Leave a Reply

Your email address will not be published. Required fields are marked *