Salem Radio Network News Saturday, July 31, 2021

Business

American Airlines sees first positive cash build since pandemic began

(Reuters) -American Airlines said on Tuesday it expects its average daily cash build rate for the second quarter to be about $1 million per day, the first positive quarter since the beginning of the COVID-19 pandemic.

Early in the pandemic, the airline said it was burning about $100 million a day. American expects to end the second quarter with about $21.3 billion in total available liquidity. (https://bit.ly/3wD1gfR)

U.S. air travel demand has been rising steadily for months as more Americans get vaccinated and travel restrictions ease.

Shares rose 1% to $20.21 in extended trade as the company said it expects to report a quarterly net loss of between $1.1 billion and $1.2 billion, excluding net special items.

“While that is certainly a large loss, it is our smallest such loss since the start of the pandemic,” Chief Executive Officer Doug Parker said in a letter.

Analysts on average estimated a loss of $1.53 billion in the second quarter, according to Refinitiv data.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Devika Syamnath)

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