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AA reports $2.2 billion 1st quarter 2020 loss

AA reports $2.2 billion 1st quarter 2020 loss

Old Apr 30, 20, 8:13 am
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AA reports $2.2 billion 1st quarter 2020 loss

American lost more than $2.2 billion in the first three months of the year its biggest quarterly loss since 2008 as the coronavirus pandemic drove down demand for air travel.

https://www.cnbc.com/2020/04/30/amer...0-results.html
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Old Apr 30, 20, 8:29 am
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Weird, I thought they were never going to lose money again....
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Old Apr 30, 20, 8:44 am
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AA compliment themselves the great job that they are doing. I feel like parker is speaking like president trump.
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Old Apr 30, 20, 8:44 am
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Originally Posted by SFO777 View Post
American lost more than $2.2 billion in the first three months of the year — its biggest quarterly loss since 2008 —as the coronavirus pandemic drove down demand for air travel.

https://www.cnbc.com/2020/04/30/amer...0-results.html
This is no surprise and more scratching into the numbers is required. OF the $2.2bn loss, $0.744bn was fleet impairment (non-cash) and not truly reflective of $70 million bn a day in cash burn. Much of that is op exp but there is also non income statement items like loan principal payments and heavily reduced cap exp. More pain to follow - hopefully $11.7bn in cash is enough to carry them through - a faster (and necessary imho) relaxation of government lockdowns and increasing confidence in flying/traveling will be helpful to AA and all.
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Last edited by george 3; May 6, 20 at 3:30 pm Reason: Thank you for noting my miss Pittie - edited.
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Old Apr 30, 20, 9:34 am
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January, February, and the first 2 weeks in March were mostly normal. It was the last 2 weeks of March when traffic tanked. Q2 will be first full quarter of reduced traffic and the financials will be ugly.
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Old Apr 30, 20, 10:12 am
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Originally Posted by george 3 View Post
This is no surprise and more scratching into the numbers is required. OF the $2.2bn loss, $0.744bn was fleet impairment (non-cash) and not truly reflective of $70bn a day in cash burn. Much of that is op exp but there is also non income statement items like loan principal payments and heavily reduced cap exp. More pain to follow - hopefully $11.7bn in cash is enough to carry them through - a faster (and necessary imho) relaxation of government lockdowns and increasing confidence in flying/traveling will be helpful to AA and all.
I hope it's not $70bn a day cash burn with $11.7bn cash on hand bc that means they were out of cash a few hours ago.
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Old Apr 30, 20, 10:23 am
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I wonder how UA and DL fared.

Perhaps this is the one time AA didn't follow DL.
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Old Apr 30, 20, 10:23 am
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Originally Posted by JJeffrey View Post
Weird, I thought they were never going to lose money again....
Someone needs to make a GIF...
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Old Apr 30, 20, 10:47 am
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Originally Posted by Pittie Pup View Post
I hope it's not $70bn a day cash burn with $11.7bn cash on hand bc that means they were out of cash a few hours ago.
Heh, I think its only 70mil per day.
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Old Apr 30, 20, 11:02 am
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Originally Posted by XLR26 View Post
Heh, I think its only 70mil per day.
I think he was being sarcastic
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Old Apr 30, 20, 11:03 am
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Originally Posted by XLR26 View Post
Heh, I think its only 70mil per day.
With 11.7b on hand and burning 70mil/day AA will run out of cash in 167 days.
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Old Apr 30, 20, 11:04 am
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Originally Posted by Austin787 View Post
January, February, and the first 2 weeks in March were mostly normal. It was the last 2 weeks of March when traffic tanked. Q2 will be first full quarter of reduced traffic and the financials will be ugly.
This.

Q2 earnings are going to be a bloodbath.
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Old Apr 30, 20, 11:15 am
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Originally Posted by enviroian View Post
I wonder how UA and DL fared.

Perhaps this is the one time AA didn't follow DL.
Delta lost a relatively paltry $535 million in the same period.
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Old Apr 30, 20, 3:30 pm
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https://chiefexecutive.net/american-...o-doug-parker/

Here it is
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Old Apr 30, 20, 3:35 pm
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No doubt Q2 will be very ugly and I don't see air travel returning to normal anytime soon. I see another round of airline Chapter 11 filings.
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