American Airlines posted a loss of $2.07 billion for the second quarter of 2020. The carrier, based in Fort Worth, turned a profit $662 million in the second quarter last year.
American says it will $16.2 billion on hand after receiving loans from the CARES Act and Goldman Sachs, but it was losing about $100 million a day in April, $56 million in May and $30 million in June.
"In short, the crisis continues, but we're prepared to weather the storm ahead and be in a position to succeed when demand recovers," says Chief Executive Officer Doug Parker.
Parker says flights in April were flying at an average of 15% capacity in April, 45% in May and 64% in June. He says the airline may not return to profitability until the end of 2021.
"This is less about people's concerns about flying and more about people having a reason to travel," Parker says.
Parker says American has cut spending by $15 billion by reducing capacity and cutting jobs. He says 41,000 employees took voluntary leave or retired. Another 5,100 management and support jobs were cut.
American did report revenues were better than expected at $1.6 Billion, whereas estimates were calling for about $1.44 Billion.
Parker called it “one of the most challenging quarters in American’s history." He said there is “much uncertainty ahead,” but expressed confidence American — the most heavily indebted among U.S. airlines — will pull through.