(MENAFN- Baystreet.ca) American Airlines (NASDAQ:AAL) on Thursday posted another big quarterly loss as the coronavirus pandemic hurt summer travel demand, but the carrier trimmed its cash burn.
Revenue dropped 73% in the three months ended Sept. 30 to $3.17 billion from $11.9 billion a year ago. The carrier swung to a $2.4 billion net loss in the third quarter from a $425 million profit a year earlier. Excluding one-time items, American posted a per-share loss of $5.54, better than analysts expected.
Fort Worth-based American earlier this month began furloughing 19,000 of its employees after the terms of $25-billion federal aid for the struggling airline sector expired. American has been the most vocal about urging lawmakers and the Trump administration to provide another $25 billion in aid for airlines, but so far no deal has been reached.
American trimmed its cash burn to about $44 million a day in the third quarter from $58 million in the previous three-month period. It expects that to go down to $25 million to $30 million a day in the fourth quarter.
According to CEO Doug Parker, "During the third quarter, we took action to reduce our costs, strengthen our financial position, and ensure our customers return to travel with confidence. The American Airlines team is doing a remarkable job taking care of our customers and each other during the most challenging time in our industry's history.
"We have a long road ahead and our team remains fully engaged and focused not just on managing through the pandemic, but on making sure we are prepared for when demand returns."
AAL shares settled 22 cents, or 1.8%, to $12.52.
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