Wednesday, December 8, 2021
54.2 F
Fort Worth

American Airlines posts $1.25 billion loss, delays new jets

🕐 2 min read

by AP News.

FORT WORTH, Texas (AP) — American Airlines said Thursday that it lost $1.25 billion in the first quarter and continued to slash costs, including delaying delivery of new jets as it waits for air travel to recover from the pandemic.

Chairman and CEO Doug Parker said the airline continues to see signs that demand for tickets is improving.

American said it burned through $27 million in cash each day in the quarter, down from $30 million a day in the fourth quarter of 2020. The airline said it reduced 2021 costs by more than $1.3 billion, including a new round of voluntary buyouts that will result in 1,600 employees leaving the company.

Leisure travel within the U.S. has picked up recently, with about 1.4 million travelers going through airports each day this month. Still, that remains about 40% below the pre-pandemic pace of 2019.

With less traffic, American reached a deal with Boeing to delay delivery of 23 737 Max jets until 2023 and 2024 and convert five of those to a larger version of the plane. American expects to take 14 Max jets over the next 12 months.

The first-quarter loss was roughly in line with Wall Street expectations. Excluding federal payroll aid and other temporary items, American said it lost $4.32 per share. The average estimate of 17 analysts surveyed by FactSet was a loss of $4.30 per share.

A year ago, when the pandemic was just starting to hit the U.S., American lost $2.24 billion.

Revenue was $4.01 billion, just shy of the $4.04 billion forecast by analysts and down 53% from $8.52 billion a year ago.

Shares of Texas-based American Airlines Group Inc. rose 2% in trading before the opening bell.

Related Articles

Our Digital Sponsors

Latest Articles

Fort Worth Business Press Logo
This advertisement will close in
00
Months
00
Days
00
Hours
00
Minutes
00
Seconds
seconds..
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate