American Airlines loses $2.4 billion in the third quarter and retires 150 aircraft.
American Airlines, affected by the drop in air travel since the beginning of the pandemic, announced Thursday that its revenue was down 73% in the third quarter and that it lost $2.4 billion during the period.
See also: American Airlines will move its operations to Beijing’s new Daxing airport starting in March 2021.
The company, which recently made 19,000 workers technically unemployed for lack of an agreement on new aid to the Washington air sector, says, according to AFP, that it reduced its rate of cash burn to $44 million per day from July to September, against $58 million on average in the second quarter.
By minimizing costs, the group said it has saved $17 billion by reducing the number of flights and aircraft in service.
See also: American Airlines plans to start flights with the Boeing 737 Max at the end of December.
Its domestic routes held up better than international ones. The passenger revenue per kilometer rate dropped 61% in the United States and 93% with the rest of the world.
The airline also reported that it withdrew more than 150 planes from its fleet early or placed them in temporary storage. In addition to the previously announced withdrawals of the Boeing 757, Boeing 767, Embraer E190, Airbus A330-300, Bombardier CRJ-200 and some other regional aircraft, the company recently decided to permanently withdraw the 15 Airbus A330-200 aircraft.
American said it reached an agreement with Boeing to secure rights to delay deliveries of 18 MAX 737 aircraft scheduled for delivery in 2021 and 2022 until 2023 and 2024. The company also completed a series of sales and lease transactions to finance the remaining deliveries of its Airbus A321 aircraft in 2021. As a result, the company now has secured financing for all of its planned deliveries through 2021.
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