American Airlines posts first loss since its bankruptcy
American Airlines posted a significantly worse-than-expected loss in the first quarter, it's first loss since emerging from bankruptcy six years ago.
American, the world's largest airline, posted a $2.2 billion net loss. Excluding special items, the loss still came to $1.1 billion, worse than the $808 million loss forecast by analysts surveyed by Refinitiv.
The bad times are far from over. American said it expects to lose $70 million a day in the second quarter, as demand for travel has fallen more than 90%. Those losses will come despite cutting $12 billion in costs for the rest of this year.
"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."
All US airlines, and most around the world, are expected to report losses for the first quarter and the rest of the year due to the collapse in air travel because of the Covid-19 pandemic. Delta and Southwest have already reported losses for the quarter, and United is expected to do so tonight. It has already warned of a $2 billion pre-tax loss and a $1 billion operating loss in the quarter.
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