MIAMI – American Airlines (AA) announced on October 22 that it ended the third quarter with another considerable loss due to the COVID-19 pandemic that reduced demand for air travel, website Invezz reported on October 24.
The total Q3 loss was totaled at US$2.2bn, with an annualized decline of revenue of 73%. As stated in the report, AA “managed to minimize its cash burn in the recent quarter” despite the lower amount of passengers. AA cut its daily cash burn to $28.99m in the third quarter.
Stock Sale to Boost Liquidity
Share prices closed the last session about 3% down, at US$12.60, “that translates to about 55% decline year to date in the stock market,” the report said. AA, per the report, said that “its revenue in the three months that concluded on 30th September came in 73% lower” at US$3.17bn, and a loss of US$5.55 per share in the quarter.
The airline is wishing to boost its liquidity through a stock sale valued at over US$1bn. All this comes when the Fort Worth-based airline “announced a massive job cut to affect roughly 19 thousand workers earlier in October,” the report stated, emphasizing that the furlough “has already started in recent weeks.”
The airline hopes more stimulus measures get passed in Congress to reverse layoffs. “American Airlines is one of the leading names in the US airline industry that is pushing the Trump Administration to offer an additional £19.16bn in financial support to the airlines. So far, however, the government has not announced any such decision,” the report stated.
Featured image: Francesco Cecchetti