American Airlines posts first loss since its bankruptcy
American Airlines posted a significantly worse-than-expected loss in Q1, its first loss since emerging from bankruptcy six years ago. The world's largest airline posted a $2.2b net loss. Excluding special items, the loss still came to $1.1b, worse than the $808m loss forecast by analysts surveyed by Refinitiv. The bad times are far from over. American said it expects to lose $70m a day in Q2, as demand for travel has fallen more than 90%. Those losses will come despite cutting $12b in costs for the rest of this year. Shares of American fell 4% in early trading on the results. "Never before has our airline, or our industry, faced such a significant challenge," said CEO Doug Parker. "We have a lot of difficult work ahead of us. And while there is still uncertainty in what's to come, we are confident that through the dedication of the American Airlines team and our swift actions, we will get through this." American has reduced its schedule by 80% for April and May and by 70% of its domestic schedule and 80% of its international schedule for June. And Parker said that American is in the process of shrinking for the long-term. "While no one has a perfect crystal ball, everyone expects recovery will be slow and demand for air travel will be suppressed for some time," he told investors. "We need to begin making decisions soon about how large an airline we want to run in the summer of 2021 and beyond. Those capacity plans are severely complicated by the extreme uncertainty regarding the anticipated level of demand, not just for the next few months but for the next few years. So we at American decided to err on the side of being smaller than we might like to be, rather than larger."<br/>
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American Airlines posts first loss since its bankruptcy
American Airlines posted a significantly worse-than-expected loss in Q1, its first loss since emerging from bankruptcy six years ago. The world's largest airline posted a $2.2b net loss. Excluding special items, the loss still came to $1.1b, worse than the $808m loss forecast by analysts surveyed by Refinitiv. The bad times are far from over. American said it expects to lose $70m a day in Q2, as demand for travel has fallen more than 90%. Those losses will come despite cutting $12b in costs for the rest of this year. Shares of American fell 4% in early trading on the results. "Never before has our airline, or our industry, faced such a significant challenge," said CEO Doug Parker. "We have a lot of difficult work ahead of us. And while there is still uncertainty in what's to come, we are confident that through the dedication of the American Airlines team and our swift actions, we will get through this." American has reduced its schedule by 80% for April and May and by 70% of its domestic schedule and 80% of its international schedule for June. And Parker said that American is in the process of shrinking for the long-term. "While no one has a perfect crystal ball, everyone expects recovery will be slow and demand for air travel will be suppressed for some time," he told investors. "We need to begin making decisions soon about how large an airline we want to run in the summer of 2021 and beyond. Those capacity plans are severely complicated by the extreme uncertainty regarding the anticipated level of demand, not just for the next few months but for the next few years. So we at American decided to err on the side of being smaller than we might like to be, rather than larger."<br/>
