American Airlines sees 90% slump in revenue

Many airlines are now adding back flights in July as demand modestly rebounds

American Airlines Group Inc on Friday joined Delta Air Lines in forecasting a 90% slump in second-quarter revenue, but said it expects to cut its cash burn rate to about zero by the end of 2020 as travel demand returns.

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The U.S. airlines have said that a modest recovery in demand was helping slow their daily cash burn rates in June, after the COVID-19 pandemic led to hundreds of flight cancellations.

Many airlines are now adding back flights in July as demand modestly rebounds.

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American Airlines expects its daily cash burn rate to slow to about $40 million in June, and said it plans to fly 55% of its domestic schedule and nearly 20% of its international schedule in July.

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“The company has recently experienced improving demand conditions and has passed the peak in cash refund activity,” American Airlines said in a statement.

However, as the duration and severity of the COVID-19 pandemic remain uncertain, the company said it expects its fiscal 2020 results to be materially impacted.