- American Airlines swings to another quarterly loss of £1.84 billion in Q3.
- The U.S. air carrier reports a 73% annualised decline in Q3 revenue.
- American Airlines cut its daily cash burn to £33.73 million in the third quarter.
American Airlines (NASDAQ: AAL) said on Thursday that it concluded the fiscal third quarter with another sizeable loss due to the Coronavirus pandemic that has brought the global demand for air travel to a near halt this year. The airline, however, managed to minimise its cash burn in the recent quarter.
Shares of the company closed the regular session about 3% down on Friday. Including the price action, American Airlines is now trading at £9.66 per share that translates to about 55% decline year to date in the stock market.
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American Airlines reports a 73% annualised decline in Q3 revenue
American Airlines said that its revenue in the three months that concluded on 30th September came in 73% lower at £2.43 billion. It valued its net loss in Q3 at £1.84 billion versus £325.78 million of profit in the comparable quarter of last year. American Airlines secured a government loan worth £4.32 billion in late September.
Adjusted for non-recurring items, the U.S. air carrier saw a loss of £4.25 per share in the third quarter. According to Refinitiv, experts had forecast American Airlines to post £4.49 of loss per share in Q3 on £2.15 billion of revenue.
American Airlines wishes to boost its liquidity by £770 million via a share sale. The Fort Worth-headquartered air carrier announced a massive job cut to affect roughly 19 thousand workers earlier in October. The layoff has already started in recent weeks.
American Airlines cut its daily cash burn to £33.73 million in Q3
According to American Airlines, its average daily cash burn reduced to £33.73 million in the recent quarter versus a much higher £44.46 million in Q2. In the fourth quarter, the air carrier wishes to bring it further down to the range of £19.16 million to £23 million.
American Airlines is one of the leading names in the U.S. airlines industry that is pushing the Trump Administration to offer an additional £19.16 billion in financial support to the airlines. So far, however, the government has not announced any such decision.
American Airlines performed slightly dovish in the stock market last year with an annual decline of close to 10%. At the time of writing, it is valued at £4.91 billion.