American Airlines has announced its First-Quarter 2020 Financial Results
- Net loss of $2.2 billion USD for January to March 2020.
- Ended first quarter 2020 with $6.8 billion in liquidity
- Expects to end second quarter 2020 with $11 billion in liquidity
- First quarterly loss since re-emerging from bankruptcy in 2013.
American Airlines is burning through $70 million a day and hopes to decrease it to $50 million in June.
American Airlines Chairman and CEO Doug Parker.
“Never before has our airline, or our industry, faced such a significant challenge. True to fashion, the American Airlines team has done a phenomenal job taking care of our customers and each other during such difficult and often heartbreaking times. We are incredibly proud of their selflessness and dedication to others.
- May capacity reduced by 80%, June capacity by 70%.
- Boeing 767-300s and E-190s officially retired. Boeing 757-200s and A330-300s expected to be retired by the year-end.
- All Envoy flights from Miami suspended May 7 to June 3
- Due to government restrictions in the Caribbean and Latin America, American will suspend 85% of its flying from Miami (MIA) through June 4.
- American will only operate 15 daily flights from New York (JFK, EWR, LGA)
- Possibility of more aircraft retirements, such as A330-200s, 737-800s, A320s.
- No hubs will be de-hubbed.
- JFK-LHR resumes June 7, 2x weekly
- LAX-LHR resumes July 7
- ORD-ATH resumes June 5, 5x weekly (still surprised they’re going through with this)
- ORD-DUB resumes June 5, 5x weekly
- ORD-LHR resumes June 4, 5x weekly
- PHL/RDU-LHR resumes July 7
- JFK-EZE/GRU resumes July 7
- MIA-GIG July 7
- MIA-EZE/GRU/SCL resume June 4
Argentina has banned flights until September, so not sure why they’re still planning to fly to Buenos Aires over the summer.
In comparison to other airlines’ first quarter 2020 results, Delta Air Lines had a net loss of $534 million while Southwest Airlines lost $94 million.
American’s Press Release: http://news.aa.com/news/news-details/2020/American-Airlines-Group-Reports-First-Quarter-2020-Financial-Results-CORP-FI-04/default.aspx
American’s capacity changes: http://s21.q4cdn.com/616071541/files/doc_downloads/FactSheets/2020/Network-Planning-Earnings-Fact-Sheet.pdf
Additional Info: https://twitter.com/e_russell/status/1255837567167102984
Also worth noting, the true effects of falling air travel demand for the most of the airline’s network didn’t come until March, so in January/February American was likely making somewhat of a profit. This means the second quarter of 2020 (April, May, June), could be even worse depending on if American’s strategical cuts actually work.