The company said it was seeing slowing demand and reduced forward bookings following a strong start to the fourth quarter due to the recent acceleration of coronavirus cases.
American said it now expects to end the fourth quarter with more than $14 billion in total available liquidity, which includes the undrawn portion of its CARES Act loan from the U.S. Treasury, as well as proceeds from sales of its common stock that the company says it may still make.
American "continues to expect the recovery in demand to be volatile and difficult to accurately forecast. These projections are based on the company’s current outlook and actual results could differ materially," the airline said in a statement.
American shares were rising 3.6% to $16.67 on Friday despite the more dire outlook.
Earlier this week, shares of JetBlue (JBLU) - Get Report fell after the carrier estimated that its fourth-quarter revenue would decline 70% from a year earlier, a sharper drop than the 65% it previously estimated.
The travel industry has been devastated by the global coronavirus pandemic, which has kept worldwide travelers home, grounded planes and stopped and reduced other transport, and closed hotels and other accommodations.
Flown capacity will decline 45% to 50% from a year earlier, JetBlue has estimated. That's weaker than the 45% decline the airline previously expected.