American Airlines posts a second quarter net loss of $2.1 billion due to the impact of the coronavirus pandemic, according to CNBC.
American Airlines made this announcement just over a week after notifying 25,000 employees across the country of future potential layoffs.
CNBC said the airline company's revenue dropped more than 86 percent in the quarter to $1.6 billion. Last year, at this time, the company's revenue was $12 billion.
In June, after cutting flights, idling planes, and employees took voluntary time off, American Airlines slashed its daily cash burn rate from $100 million per day in April to $30 million per day.
Due to the country's continued rise in coronavirus cases, the Fort Worth, Texas-based airline said they expect their third quarter capacity to be down 60 percent from last year.
We have moved swiftly to improve our liquidity, conserve cash and ensure customers are safe when they travel. There is much uncertainty ahead, but we remain confident we will emerge from this crisis more agile and more efficient than ever before.
The coronavirus pandemic continues to affect airlines across the country during what would be their peak season with summer travel as positive cases continue to increase.
American Airlines CEO Doug Parker and President Robert Isom both weighed in with their thoughts on the current situation.
The current environment is more unpredictable and more volatile than anything we ever could have imagined,” Parker and the airline’s president Robert Isom, said in an employee note.
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