American Airlines Group Inc. (Nasdaq: AAL) reported today its financial results for Q1 2021, earning US$4.0 billion in revenue and incurring a US$1.3 billion net loss. This quarter’s revenue is a 52.9% decline from last year’s US$8.5 billion while the net loss is a 44.2% improvement from last year’s US$2.2 billion loss.
The US$1.3 billion net loss equates to a negative US$1.97 per share. Excluding the recognized US$1.95 billion before-tax net special credits related to the financial assistance received thru its payroll support program extension agreement, the company’s net loss amounts to US$2.7 billion, or negative $4.32 per share.
The company also raised US$10.0 billion through debt, part of which was used to prepay in full the previously secured loan from the U.S. Department of the Treasury.
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To improve its financial position for Q1 2021, American Airlines implemented a number of initiatives:
- US$1.3 billion permanent non-volume cost reductions for all of 2021
- deferring aircraft orders made with Boeing
- reducing the cash burn rate to US$27.0 million per day
- obtaining access to an additional $3.3 billion in financial assistance and planning to defer approximately $2 billion in pension funding as per recently passed COVID-19 relief package legislation
- issuing $6.5 billion of bonds and entering into a new $3.5 billion term loan facility
The company ended Q1 2021 with approximately US$17.3 billion of total available liquidity and expects to raise this to US$19.5 billion by the end of the second quarter.
You may see the full details of American Airlines’ Q1 2021 financial results here.
American Airlines Group Inc. last traded at $21.01 on the Nasdaq.
Information for this briefing was found via Edgar and American Airlines. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
