FORT WORTH (WBAP/KLIF News) – Fort Worth-based American Airlines reported a massive $2.2 billion dollar net loss for the first quarter.
It’s the latest among the industry to report the staggering hit as the COVID-19 pandemic continues to cause a steep drop in air travel.
American CEO Doug Parker said the financial losses are unprecedented.
“Never before has our airline, or our industry, faced such a significant challenge,” he said.
In a statement, the company said it’s had to restructure its business to weather this storm, estimating a reduction of more than $12 billion in its 2020 operating and capital expenditures, achieved through lower fuel expenses and a series of other actions.
Parker said the federal aid the company received has been vital and warned of the difficult albeit uncertain path ahead for the airline.
“We are particularly grateful for the $5.8 billion in financial assistance American will receive through the Payroll Support Program, and we appreciate the bipartisan congressional and U.S. Department of the Treasury and Department of Transportation support to protect airline jobs and ensure a strong and competitive U.S. airline industry.
Industry analysts said domestic air travel has dropped 95% from last year.
Click here to read American’s full statement.
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