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.
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 Sedar, 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.