7/23/2020, 1:23 PM (Source: TeleTrader)
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American's Q2 revenue tumbles 86% YoY to $1.62B

American Airlines Inc. reported on Thursday its operating revenue in the second quarter of 2020 dropped 86% year-over-year to $1.62 billion. Meanwhile, operating expenses fell 62% per annum to $4.11 billion. The airline posted a net loss of $2.07 billion, compared to a gain of $662 million last year. Per diluted share, the company posted a loss of $4.82.

The company said its flight capacity is predicted to be down 60% in the third quarter, warning that it estimates show it has over 20,000 employees more than it will need to operate its fall schedule. More than 41,000 workers already agreed to early retirement, a reduced work schedule or a partially paid leave, with management and support teams being reduced by 30%, the airline added.

"COVID-19 and the resulting shutdown of the US economy have caused severe disruptions to global demand for air travel," chief executive Doug Parker said in the press release. "There is much uncertainty ahead, but we remain confident we will emerge from this crisis more agile and more efficient than ever before."

Breaking the News / MD