American Airlines Reports Whopping Loss in First Quarter

Air carriers everywhere continue to endure pain and sorrow caused by the unprecedented coronavirus pandemic. 

Now American Airlines has reported its first-quarter financial results for 2020 on April 30 and the outcomes as are dreadful as they get. The airline recorded a net loss of $2.2 billion, one  of the largest losses for a US airline this quarter thus far and the worst ever for AA, according to figures posted by Simple Flying.

Amidst the coronavirus pandemic, American has reported severe operational disruptions leading to significant financial hits. 

The airline recorded $8.5 billion in revenues. $7.7 billion came from passengers, another $147 million from cargo operations, and $687 million from other sources. However, the airline then faced over $11 billion in operating expenses. The most significant expense for the airline was $3.1 billion in salaries.

 Another $1.4 billion were jet fuel costs and taxes, while $1.9 billion were costs for regional operation expenses. Aircraft maintenance cost the airline $629 million while aircraft leases total $334 million.