logo
  

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
Royal Caribbean Group's ultra-luxury brand Silversea Cruises is set to launch the world's first hybrid-powered cruise ship in the summer of 2023. This will also be the first ship with large-scale fuel cell technology to enable emission-free port operations. The fuel cells will provide 100% of power while at port. Affco USA is recalling around 24,461 pounds of frozen raw lamb shoulder products that were not presented for import re-inspection into the U.S., the U.S. Department of Agriculture's Food Safety and Inspection Service or FSIS announced. The recall involves the frozen raw lamb shoulder items that were imported on July 12, 2021. American Express Company (AXP) reported an increase in profit for the third quarter that also topped Wall Street estimates. Consolidated total revenues net of interest expense rose 25 percent year-on-year, primarily reflecting growth in Card Member spending, as well as a rise in the average discount...
Follow RTT