DALLAS (KRLD) - Fort Worth-based American Airlines today reported a first-quarter loss of $2.2 billion, or ($5.26) per share.
"Never before has our airline, or our industry, faced such a significant challenge," said American Airlines Chairman and CEO Doug Parker in a news release. "True to fashion, the American Airlines team has done a phenomenal job taking care of our customers and each other during such difficult and often heartbreaking times. We are incredibly proud of their selflessness and dedication to others."
The staggering losses are in line with losses reported earlier this week by Southwest Airlines, United Airlines, and Delta Airlines.
"The airlines have no control over this, whatsoever," said Mike Boyd, an airline consultant with the Boyd Group. "They're in a business just like the New York subway system. They're close to each other, and you can't do it any other way."
Boyd sees continued losses in the second quarter, with a possible uptick in June as people get the itch to travel.
"People will put up with what they have to right now. The reason they are putting up with it is they have no money and no place to go" said Boyd.
American said it is taking measures to cut routes for the short term. Such moves have fewer, but fuller planes in the sky.
In its release American says it "… 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."
Included in those actions are early retirement of some of the company's planes, including "20 Embraer E190s, 34 Boeing 757s, 17 Boeing 767s and nine Airbus A330-300s, along with a number of older regional aircraft."
