Due to the COVID-19 outbreak, American Airlines has reported a pre-tax loss of more than $2.7 billion in the second quarter of financial 2020.
Further, illustrating the exact amount of loss born, United Airlines revealed to suffer $1.6 billion in a week’s time. This has been considered as the biggest loss to American Airlines so far.
On this, Doug Parker, Chief Executive at American Airlines, said- “This was one of the most challenging quarters in American history,” Source: Breaking Travel News.
Further, he added- “COVID-19 and the resulting shutdown of the United States economy have caused severe disruptions to the global demand for air travel. We have moved swiftly to improve our liquidity, conserve cash and ensure customers are safe when they travel,” Source: Breaking Travel News.
The carrier gave a try to accelerate the liquidity by a net worth of $3.6 billion throughout the quarter. For this, the convertible bonds, ordinary stock items, and secured bonds have been offered to compensate for the loss.
Parker continued his speech on the suffered loss and said- “There is much uncertainty ahead, but we remain confident we will emerge from this crisis more agile and more efficient than ever before.” Source: Breaking Travel news.
American Airlines says that the passengers’ demands have improvised by the time strict lockdown has started since April. The level of load factors is still below the level of 2019.
Despite the corona outbreak, during May and June, the revenue trends were promoting; however, with the increased number of cases, the demands started to weaken again. Alongside this, a set of new regulations have been imposed to maintain complete hygiene precautions.
The company said it would continue to synchronize its forward capacity.
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Source: Breaking Travel News