American Airlines Group Inc. (AAL) posted a big loss for the second quarter, as travel was decimated by the coronavirus pandemic. The carrier said it had a net loss of $2.067 billion, or $4.82 per share, in the quarter, after income of $662 million, or $1.49 a share, in the year-earlier period. Its adjusted per-share loss came to $7.82, slightly better than the FactSet loss-per-share consensus forecast of $7.84. Revenue tumbled 86% to $1.622 billion from $11.960 billion, ahead of the FactSet consensus of $1.437 billion. "This was one of the most challenging quarters in American's history," CEO Doug Parker said in a statement. "COVID-19 and the resulting shutdown of the U.S. economy have caused severe disruptions to global demand for air travel." The airline ended the quarter with $10.2 billion in available liquidity, after receiving bailout funds from the U.S. government and issuing $1.2 billion of debt. It expects to reduce 2020 capex by more than $15 billion, mostly due to cost cuts resulting from less flying. "Passenger demand and load factors have improved since bottoming out in April, but continue to be significantly below 2019 levels," the airline said. "While May and June revenue trends were encouraging, demand has weakened somewhat during July as COVID-19 cases have increased and new travel restrictions have been put into place." The company expects third-quarter system capacity to be down about 60% versus the year-earlier period. Shares rose 2% premarket, but are down 60% in the year to date, while the U.S. Global JETS ETF (JETS) has fallen 48% and the S&P 500 has gained 1.4%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 23, 2020 07:17 ET (11:17 GMT)
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