American Airlines Cash Burn Rate Turns Positive; Warns On Q3 Revenue, Capacity

American Airlines Group Inc (AAL), while reporting a profit in its second quarter compared to last year's hefty loss, reported Thursday that its daily cash burn rate turned positive for the second quarter to a cash build rate of approximately $1 million per day.

Looking ahead, based on current trends, it expects its third-quarter total revenue to be down approximately 20 percent from the pre-pandemic 2019, and capacity to be down around 15 percent to 20 percent compared to that of 2019.

The company also expects its third-quarter pre-tax margin excluding net special items will be between negative 3 percent and negative 7 percent.

The Company now expects to reduce its debt by more than $15 billion by the end of 2025 versus its previous guidance of $8 billion to $10 billion.

American also said it is prepaying today the entirety of its $950 million spare parts term loan that was scheduled to mature in April 2023.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
While reporting its financial results for the second quarter on Thursday, Kellogg Co. (K) reaffirmed its currency-neutral adjusted earnings growth guidance for the full year 2021. For fiscal 2021, the company now projects currency-neutral adjusted earnings per share growth of about 1 to 2 percent... Moderna Inc. (MRNA) reported a profit for the second quarter compared to a loss in the previous year, reflecting surging revenues on commercial sales of the company's COVID-19 vaccine in the U.S. Quarterly earnings per share and revenues topped analysts' expectations. The company raised its 2021 sales forecast for its COVID-19 vaccine. New Widetech has recalled dehumidifiers sold under various brand names citing fire and burn risks, the U.S. Consumer Product Safety Commission said. The brand names include AeonAir, Amana, Haier, Honeywell, and Whirlpool, among others. The recall was initiated after New Widetech received reports of 107 incidents of the recalled dehumidifiers overheating and/or catching fire.
Follow RTT