American Airlines in the first quarter received a record loss since the 2008 crisis
- - May 03, 2020
The largest us airline, American Airlines Group Inc., recorded a significant net loss in the first quarter of 2020 on the background of the coronavirus pandemic, which led to a sharp drop in demand for air transportation. This is reported by Interfax with reference to the data of the air carrier.
As noted, the net loss in January-March was $2.241 billion, or $5.26 per share, compared with a profit of $185 million, or $0.41 per share, for the same period a year earlier. This is the company's strongest loss since the 2008 financial crisis. Adjusted loss per share was $2.65, while analysts polled by FactSet on average expected this figure to be $2.08 per share. The airline's quarterly revenue decreased by 19.6% to $8.515 billion compared to $10.584 billion. Analysts ' consensus forecast called for a figure of $9.255 billion. American Airlines, like other airlines, has been hit hard by reduced air travel due to the COVID-19 pandemic, which has forced many countries to impose strict restrictions to prevent the spread of infection. "Never before has our airline or our industry faced such a serious problem," American Airlines chief Executive Doug Parker said in a press release. According to Parker, the company "took swift and decisive measures to reduce costs and maintain liquidity." American Airlines expects the amount of available liquidity to grow to $11 billion by the end of June from $6.8 billion at the end of the first quarter. American Airlines shares are down 4.6% in Thursday trading. Since the beginning of the year, the company's capitalization has fallen by about 58%, while the Standard & Poor's 500 index has lost about 10% over this period.
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