American Airlines And Southwest Airlines Record Q3 2020 Losses
American Airlines Group Inc and Southwest Airlines Co have both recorded losses for Q3 2020.
American Airlines has recorded a third straight quarterly loss, and said that its third-quarter cash burn rate was approximately $44 million per day, compared with approximately $58 million a day during the second quarter.
The company recorded a net loss of $2.40 billion, or $4.71 per share, for the third quarter ended September 30, compared with a profit of $425 million, or 96 cents per share, a year earlier.
On an adjusted basis, the company lost $5.54 per share. Total operating revenue fell to $3.17 billion from $11.91 billion.
American Airlines ended the third quarter with $13.6 billion in available liquidity.
Southwest Airlines has recorded a loss of more than $1 billion for the third quarter, which is its biggest loss ever, while saying that it will burn less cash in the months to come as leisure bookings are showing signs of recovery from this year's coronavirus-driven collapse.
"We urge our federal leaders to pass an economic relief package that includes a clean, six-month extension of the Payroll Support Program (PSP) to further protect jobs and crucial air travel," Southwest CEO Gary Kelly said.
The airline forecast fourth-quarter average core cash burn of approximately $11 million per day, compared with $16 million per day during the third quarter and $23 million per day during the second quarter.
The Dallas-based company recorded a net loss of $1.16 billion, or $1.96 per share, for the third quarter ended September 30, compared with a profit of $659 million, or $1.23 per share, a year earlier.
On an adjusted basis, the company lost $1.99 per share. Total operating revenue fell by 68.2% to $1.79 billion.
Southwest ended the second quarter with liquidity of $15.6 billion.