American Airlines Group (AAL) - Get Report posted a modestly wider-than-expected first quarter loss Thursday, but noted that improved booking trends will support group liquidity as carriers look to exit the travel-related impact of the coronavirus pandemic.
American said its adjusted loss for the three months ending in March was pegged at $4.32 per share, or $2.7 billion, compared to a loss of $2.65 per share over the same period last year and a Street consensus forecast of $4.31 per share. Group revenues, the carrier said, plunged 53% from last year to $4 as travel restrictions linked to the coronavirus pandemic continued over the first few months of 2021.
Looking into the current quarter, American Airlines said capacity will be down around 20% to 25% from 2019 levels, and will end the three month period with total liquidity of around $19.5 billion. Revenues, the carrier said, will be some 40% south of 2019 levels for the quarter.
“We are incredibly proud of the American Airlines team for their continued care of our customers and each other,” said CEO Doug Parker. “Our team has shown up every day throughout the pandemic and served more customers than any other airline. That focus has served as our inspiration and positions us well as even more customers return to the skies."
“Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand," he added. "We remain confident the network enhancements, customer-focused improvements and efficiency measures we’ve put into place will ensure American is well-positioned for the recovery.”
American Airlines shares were marked 1% lower in early trading immediately following the earnings release to change hands at $20.82 each.