American Airlines H1 cargo revenue slumps 37pc to US277m
AMERICAN Airlines has offered cargo-only flights during the COVID-19 pandemic, but the new line of business didn't overcome the lost cargo moved on passenger airplanes that were grounded in the second quarter
AMERICAN Airlines has offered cargo-only flights during the COVID-19 pandemic, but the new line of business didn't overcome the lost cargo moved on passenger airplanes that were grounded in the second quarter.
The Fort Worth, Texas-based airline reported US$130 million in cargo revenue for the second quarter ended June 30, down 41 per cent from the same quarter last year. Cargo revenue for the first half of the year amounted to $277 million, 37 per cent below 2019.
American said it currently operates more than 130 weekly widebody and cargo-only flights. It transported more than 100 million pounds of mail, goods and Covid-19 supplies worldwide in the second quarter.
Overall, the airline posted a second quarter $2.7 billion pretax loss on a nearly $10 billion drop in revenue from last year. Total revenue for the second quarter reached $1.6 billion, down 86 per cent compared to the prior year.
CEO Doug Parker said the airline's biggest priority is continuing to reduce cash burn across the system. The airline estimates that it will reduce 2020 operating and capital expenditures by more than $15 billion from a year ago, including $700 million in non-aircraft capital expenses by eliminating purchases of ground handling equipment and IT projects.
Contributing to the savings is the retirement of more than 150 planes.
American ended the second quarter with $10.2 billion in available liquidity and could soon have another $4.75 billion if it finalises an emergency loan from the US government.
Mr Parker said the airline will continue to downsize while business and leisure travel remain depressed, New York's FreightWaves reported.