American Airlines Generates Cash for First Time Since Pandemic Began
Posted On: Jun 03, 2021
American Airlines Group Inc. said it generated cash in May for the first time since the pandemic began as it received summer bookings.
The airline on Thursday said the seven-day moving average of net bookings was about 90% the level in the same period in 2019 as of Wednesday. Its domestic load factor for May was about 84% and more than 88% over the Memorial Day weekend, the company said.
The company said it expects the strength in bookings to continue through the end of second quarter and into the third quarter. American Airlines said it expects leisure yields to approach or exceed corresponding 2019 levels during the peak summer travel period.
American Airlines said business demand remains weak, though it is starting to see higher demand among small and medium-sized business and certain large corporate customers.
The company said it continues to expect second-quarter system capacity to be down 20% to 25% and for revenue to be down about 40% compared with the second quarter of 2019.
It expects to end the second quarter with a liquidity of more than $20 billion, compared with its prior guidance of $19.5 billion.