(Reuters) – 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.
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.
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.
“The company has recently experienced improving demand conditions and has passed the peak in cash refund activity,” American Airlines said in a statement, filed as a Form 8-K with the SEC.
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.
Reporting by Sanjana Shivdas in Bengaluru; Editing by Krishna Chandra Eluri and Amy Caren Daniel.