American Airlines posts $2.1 billion net loss in second quarter

Earnings

Jets are parked on runway 28 at the Pittsburgh International Airport on March 27, 2020 in Pittsburgh, Pennsylvania.

Jeff Swensen | Getty Imageas

American Airlines posted a net loss of $2.1 billion in the second quarter, the latest carrier to outline the financial damage to travel demand from the coronavirus pandemic.

American carrier has added more capacity back than some of its large competitors like Delta or United than some of its peers in adding capacity back to the market as aimed to capitalize on an uptick in air travel demand that bottomed out in April.

But airline executives are warning that demand has softened due to a spike in coronavirus cases and travel restrictions abroad and quarantine orders in states like New York.

“The current environment is more unpredictable and more volatile than anything we ever could have imagined,” said American’s CEO Doug Parker and the airline’s president Robert Isom.

Investors are focused now on airlines’ cash burn rates. In addition to parking hundreds of jetliners and slashing routes, carriers are gearing up to shed more workers as the Oct. 1 expiration of the terms of federal aid that prohibit job cuts approaches.

American Airlines’ executives will hold an analyst call at 8:30 a.m. EDT.

This is breaking news. Check back for updates.

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