American Airlines expects first-quarter revenue to plunge 62% vs 2019

(Reuters) -American Airlines said on Tuesday it expects its first-quarter revenue to plunge about 62% 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% and 65%. (bit.ly/3g83hw2)

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.

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