American Airlines said on Tuesday it expects its first-quarter revenue to plunge about 62 percent compared with the same period in 2019, and to post a loss of about $2.7 billion to $2.8 billion, excluding the gains from a payroll support program.
The company had previously forecast a decline of between 60 percent and 65 percent.
Earlier in the quarter, the airline reached an agreement with Boeing to defer delivery of 18 Boeing 737 MAX aircraft to 2023 and 2024 from the previous target of 2021-2022, and convert five 787-8 aircraft to 787-9 aircraft.
American Airlines now expects its average daily cash burn rate for the quarter to be about $27 million per day compared to its previous forecast of $30 million.
Excluding about $8 million per day of regular debt principal and cash severance payments made, the company’s cash burn rate turned positive in March, American Airlines said in a regulatory filing.
It expects to end the first quarter with nearly $17.3 billion in total available liquidity.
By Shreyasee Raj