American, Southwest Join Rivals In Reporting Big 3Q Losses
Airlines are continuing to pile up billions of dollars in losses as the pandemic causes a massive drop in air travel.
American Airlines said Thursday that it lost $2.4 billion and Southwest Airlines lost $1.16 billion in the normally strong third quarter, which includes most of the summer vacation season.
Revenue tumbled 73% at American and 68% at Southwest, compared with a year earlier, before COVID-19.
The airlines have been cutting workforces by convincing thousands of employees to leave, and in the case of American, by furloughing 19,000 workers this month. The airlines are still hoping for another $25 billion lifeline from Congress and the White House that American said would allow it to recall the furloughed workers.
American, based in Fort Worth, Texas, said its loss after one-time gains and losses was $5.54 per share. That was better than Wall Street feared, as analysts surveyed by Zacks Investment Research forecast a loss of $5.62 per share. Revenue tumbled to $3.17 billion, above the analysts’ prediction of $2.8 billion.
Dallas-based Southwest’s adjusted loss came to $1.99 per share, also better than expected. Analysts had forecast a loss of $2.44 per share. Revenue fell to $1.79 billion; analysts predicted $1.68 billion.
Alaska Air Group Inc. reported a loss of $431 million. The Seattle-based company said that removing one-time gains and costs, the loss came to $3.23 per share, which was wider than the $2.86 per share loss predicted by analysts. Revenue dropped to $701 million, slightly better than Wall Street expected.