$ 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).

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Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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