American Airlines Adjusted Loss Becomes Smaller Than Expected as Revenue More Than Quadruples

American Airlines Group Inc. AAL,
Thursday reported an adjusted loss that narrowed more than expected, sales more than quadrupled to beat forecasts and daily cash burn turned positive as the recovery from COVID-19 continues. The stock fell 0.4% in premarket trading, after rising 12.8% in the past two days. On a net basis, the airline rose to income of $19 million, or 3 cents per share, from a loss of $2.07 billion, or $4.82 per share, in the same period a year ago. Excluding one-time items, adjusted loss per share fell from $7.82 to $1.69, surpassing FactSet’s loss consensus of $2.03. Total revenue increased 361% to $7.48 billion, above the FactSet consensus of $7.32 billion. Load factor improved to 77.0% from 42.3%, in line with expectations as traffic increased to 42.02 billion passenger miles from 7.23 billion RPM and capacity grew to 54.56 billion available seat miles from 17 .08 billion ASM. The company took an average of $1 million in cash per day and closed the second quarter with a record $21.3 billion in total available liquidity. The stock is up 35.7% through Wednesday, while the US Global Jets ETF JETS,
gained 4.4% and the S&P 500 SPX,
has improved by 16.0%.