American Airlines reports second consecutive quarterly net loss

AA reports net loss of $2.07bn for the quarter ended June 30, compared with a profit of $662m a year earlier

American Airlines posted its second consecutive quarterly loss as a result of the Covid-19 pandemic leading to a shutdown of the US economy and halting demand for air travel.

It reported a net loss of $2.07bn (£1.60bn, €1.76bn), or $4.82 per share, for the quarter ended June 30, compared with a profit of $662m, or $1.49 per share, a year earlier. 

Total operating revenue fell 86.4 per cent to $1.62bn from close to $12 bn a year earlier.

Excluding items, the loss was $3.4bn, or $7.82 per share.

The company’s shares, however, rose 1.9 per cent to $11.56 before the bell after the US airline said its second-quarter cash burn rate was about $55mper day, lower than its forecast of $70m per day.

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The US airline ended the second quarter with $10.2bn in available liquidity.

American said it expects its capacity in the third quarter to be down 60 per cent compared with last year.

FURTHER READING: American Airlines is overstaffed by about 8,000 flight attendants and warns of job losses

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