Travel Demand Impacts American Airlines, Company Posts $2.1 Billion Second Quarter Loss
FORT WORTH (CBSDFW.COM/AP) — Fort Worth-based American Airlines reported a second-quarter loss of $2.07 billion Thursday, as a result of the coronavirus and drastically reduced air travel demand.
The Fort Worth-based company said it had a loss of $4.82 per share. Losses, adjusted for non-recurring gains, came to $7.82 per share.
The results did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of $6.75 per share.
"There is much uncertainty ahead, but we remain confident we will emerge from this crisis more agile and more efficient than ever before," said CEO Doug Parker.
The travel and hospitality industries have taken a particularly hard hit from the COVID-19 pandemic, and now with a resurgence in cases in Texas and across the country the peak summer travel season continues to be n jeopardy.
The world's largest airline posted revenue of $1.62 billion in the period, which beat Street forecasts.
American Airlines shares have decreased 60% since the beginning of the year. The stock has decreased 65% in the last 12 months.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
