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American Airlines Slips To Loss In Q1; Stock Down

American Airlines Group Inc. (AAL) reported that its first-quarter net loss was $2.24 billion or $5.26 per share, compared to net income of $185 million or $0.41 per share in the prior year.

In Thursday pre-market trade, AAL is trading at $11.92, down $0.71 or 5.62 percent.

Excluding net special items, first-quarter net loss was $1.13 billion or $2.65 per share, compared to net income of $237 million or $0.52 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report a loss of $2.33 per share. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter decreased to $8.52 billion from $10.58 billion in the previous year. Wall Street analysts had a consensus revenue estimate of $8.94 billion for the quarter.

American estimates a reduction of more than $12 billion in its 2020 operating and capital expenditures, achieved through lower fuel expense and a series of actions.

The company reduced system capacity by approximately 80% in both April and May, and 70% in June.

American said it extended waivers for travel occurring through the end of September 2020, enabling customers to change plans and travel through December 2021. It waived change fees for customers who purchase new tickets by May 31, 2020, for future travel.

It suspended all nonessential hiring, paused noncontractual pay increases, reduced executive and board compensation, and implemented voluntary leave and early retirement programs to reduce labor costs.

The company said it ended first quarter with $6.8 billion of available liquidity and expects to end second quarter with approximately $11 billion of liquidity.

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