Coronavirus: American Airlines has a net loss of 2.07 billion

Coronavirus: American Airlines subit une perte nette de 2,07 milliards de dollars

The airline company American Airlines, struck, as some of its competitors by the fall in air transport since the beginning of the pandemic, has recorded a net loss of 2.07 billion in the second quarter.

While the virus was spreading, the local authorities imposed measures of containment and the potential customers were increasingly reluctant to stay in a confined space for several hours, the sales of the company dropped by 86 % to $ 1.62 billion dollars over the period, indicates a news release issued Thursday.

“This has been one of the quarters of the most challenging years in the history of American “, commented its CEO Doug Parker.

After falling dramatically in April, demand for tickets has started to recover in may and June. But, it is a company of air transport, it has again weakened in July, with the explosion of new cases of COVID-19 in the United States, and new measures of restrictions on movement put in place.

The company expects that its ability of flight in the third quarter were 60 % lower than the same period in 2019.

On average in the second quarter, American has burned $ 55 million per day of liquidity, where the company expected an average of $ 70 million per day.

The amount of money spent per day has gone from nearly $ 100 million in April to approximately $ 30 million in June.

The group ended the quarter with approximately $ 10.2 billion of cash and has since negotiated a loan of $ 4.75 billion of the government, and issued $ 1.2 billion of additional debt.

To reduce its costs and preserve its cash, American wishes to reduce its operational expenditure and investment of 15 billion dollars in total by 2020. These savings will be primarily achieved through the reduction in the number of flights.

The company, which employs approximately 130 000 employees, had already warned in mid-July that it would lay off up to 25,000 employees in October, boosting the wave of layoffs that is expected to overwhelm in the fall of the sector.

Like other corporations, air transport has benefited in march from a budget of $ 25 billion paid by the government, it is engaged in exchange do not delete jobs until 30 September.

More than 41 000 employees of American have so far opted for an early retirement, a reduced working time or a leave of absence partially paid.

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