American Airlines (NASDAQ:AAL) earnings for first quarter of 2020 have AAL stock taking a beating on Thursday. That comes after reporting adjusted losses per share of $2.65. This is worse than Wall Street’s estimate of $2.33 per share. The travel company’s revenue of $8.52 billion is also below analysts’ estimates of $8.94 billion.
Here’s what else is worth noting about the most recent American Airlines earnings report.
- Adjusted per-share losses are a negative switch from adjusted per-share earnings of 52 cents during the same time last year.
- Revenue comes in 19.6% lower than the $10.58 billion reported in the first quarter of 2019.
- Operating loss of $2.55 billion is worse year-over-year than its operating income of $375 million.
- The American Airlines earnings report also includes a net loss of $2.24 billion.
- That’s a massive drop compared to its net income of $185 million in the same period of the year prior.
- AAL is struggling as the novel coronavirus restricts travel and harms the economy.
Doug Parker, chairman and CEO of American Airlines, said this in the earnings report:
“We have moved quickly and aggressively to reduce our costs and bolster our liquidity,” Parker continued. “We are particularly grateful for the $5.8 billion in financial assistance American will receive through the Payroll Support Program, and we appreciate the bipartisan congressional and U.S. Department of the Treasury and Department of Transportation support to protect airline jobs and ensure a strong and competitive U.S. airline industry.”
American Airlines notes that it is expecting an average cash burn rate of $70 million a day in the second quarter of 2020. Based on these estimates, it is expecting liquidity of $11 billion at the end of the quarter.
AAL stock was down 4.91% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
