LONDON – American Airlines (AA) has released its Q1 2021 update, showing it flew a total of 37.8 billion available seat miles, 43.4% compared to Q1 2019.

Additionally, the airline’s total income fell 62% from Q1 of 2019. AA pays approximately US$1.7 per gallon for fuel, consuming 610 million gallons (US$1.04bn) during the first quarter of 2021.

AA’s Boeing 737MAX 8 Photo: Brandon Farris/Airways

Losses and Liquidity

According to the report, AA expects a loss of US$1.2-1.3bn in Q1, excluding the effect of net special credits, where a loss of approximately US$2.7-2.8bn is estimated. Additionally, the carrier expects to close the first quarter with approximately US$17.3bn in liquidity.

In addition, daily losses during the first quarter amount to US$27m, which includes approximately US$9m in regular debt and severance payments.

AA’s Boeing 787-9 during taking off Photo: Brandon Farris/Airways

Fleet and Pre-Delivery Payment

During Q1, AA reached an agreement with Boeing to supply the latest deliveries of the 787-8s. The airline has converted its last five Boeing 787-8s into 787-9s, postponing deliveries of these between 2022 and 2023. The remaining 14 Boeing 787-8s will be delivered at the end of the first quarter of 2022. In addition, the company has exercised the deferral of its last 18 Boeing 737 MAXs, from 2023 to 2024, instead of from 2021 to 2022.

Furthermore, AA has chosen to prepay US$248m for loans under its Boeing 737 MAX upfront credit line with related deposits prior to delivery to be returned to the airline by the resulting deferral.

American currently has 41 Boeing 737MAX 8s (with an order of 59 more), 23 Boeing 787-8s (with an order of 14 more, there were 19, but 5 have been converted to 787-9s) and 22 Boeing 787-9s. (with an order of another 30, there were 25 but 5 787-9 converts from 787-8 were added).

Featured image: AA’s Boeing 787-8 during landing. Photo: Andrew Henderson/Airways