FILE PHOTO: A Boeing 737 Max airplane is pictured on the tarmac at Dallas Fort Worth Airport before a media flight to Tulsa, Oklahoma in Dallas, Texas, U.S., December 2, 2020. REUTERS/Carlo Allegri/File Photo

Reuters

American Airlines sees fourth-quarter cash burn at high end of guidance

By Reuters | Posted - Dec. 4, 2020 at 10:44 a.m.


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FORT WORTH, Text (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.

Delta Air Lines 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.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Krishna Chandra Eluri)

© Copyright Thomson Reuters 2020

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