American Airlines sees fourth-quarter cash burn at high end of guidance
Reuters
Published Dec 04, 2020 09:00AM ET
Updated Dec 04, 2020 09:15AM ET
(Reuters) -American Airlines said on Friday it expects its fourth-quarter average daily cash burn to be at the high end of its previously forecasted range of between $25 million and $30 million.
The U.S. airline industry is still losing billions of dollars every month as travel demand remains weak and recent coronavirus travel advisories have discouraged holiday travel.
"Rising COVID-19 case counts and associated travel restrictions..have resulted in a slowing of net bookings growth, which has persisted into December," American said in a statement.
The U.S. airline now expects to end the fourth quarter with about $14 billion in total available liquidity. (https://
Delta Air Lines (NYSE:DAL) warned on Thursday it would lose about $2 million more than forecast each day in the fourth quarter, but kept a target to halt its cash burn next spring.
Airlines are hoping that vaccine prospects will start lifting demand throughout 2021 but do not expect a full recovery for some time.
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Written By: Reuters
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