American Airlines (AA) reported Q1 revenues of $4bn, down 53% YoY and net losses of $1.3bn, its fifth consecutive quarterly loss. Revenues were bogged down by a 39% YoY reduction in total available seat miles (ASMs), a metric that measures airlines’ carrying capacity available to generate revenues. The airline said they ended the quarter with ~$17.3bn in liquidity and that they expect to end Q2 with ~$19.5bn in liquidity. The carrier said they reduced cash burn rate to ~$27mn/day in the quarter with estimated average daily cash burn rate at ~$4mn in March. AA said it is planning to operate Q2 capacity 20%-25% less than the same quarter of 2019. CEO Doug Parker said ““Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand. We remain confident the network enhancements, customer-focused improvements and efficiency measures we’ve put into place”.
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