American Airlines recorded a further quarterly loss of £1.84 billion in the third quarter.
The U.S. airline reports a 73% decline in 3rd quarter revenues on an annualized basis.
American Airlines reduced its daily cash burn in the third quarter to £33.73 million.
American Airlines (NASDAQ: AAL) announced on Thursday that it ended the third quarter of the fiscal year with another substantial loss due to the coronavirus pandemic that has nearly halted global demand for air travel this year. However, the airline had succeeded in minimizing its cash consumption in the last quarter.
The company’s shares closed the regular meeting on Friday with a minus of about 3%. Including the price action, American Airlines is now trading at £9.66 per share, a drop of about 55% in the stock market so far this year.
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American Airlines reports a 73% decline in 3rd quarter revenues on an annual basis
American Airlines reported that its revenues decreased by 73% to £2.43 billion in the three months ended September 30. It valued its net loss for the third quarter at £1.84 billion, compared to a profit of £325.78 million in the same quarter last year. American Airlines secured a £4.32 billion government loan at the end of September.
Adjusted for non-recurring items, the US airline posted a loss of £4.25 per share in the third quarter. According to Refinitiv, experts had forecast that American Airlines would post a loss per share of £4.49 in the third quarter on revenues of £2.15 billion.
American Airlines intends to increase its liquidity by £770 million through a share sale. The Fort Worth-based airline announced massive job cuts at the beginning of October, which will affect around 19 thousand employees. The layoffs have already begun in recent weeks.
American Airlines has reduced its daily cash consumption to £33.73 million in the third quarter.
According to American Airlines, the average daily cash burn rate in the last quarter decreased to 33.73 million pounds sterling, compared to a much higher figure of 44.46 million pounds sterling in the second quarter. In the fourth quarter, the airline plans to further reduce it to between 19.16 and 23 million pounds sterling.
American Airlines is one of the leading names in the U.S. airline industry, urging the Trump Administration to offer an additional £19.16 billion in financial support to the airlines. However, the government has not yet announced any such decision.
American Airlines’ performance on the stock market was slightly weaker last year with an annual decline of almost 10%. At the time of writing this report, it is estimated at £4.91 billion.