American Airlines (AAL) loses $2.2 billion in Q1 2020, biggest in 12 years

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A member of a ground crew walks past American Airlines planes parked at the gate during the coronavirus disease (COVID-19) outbreak at Ronald Reagan National Airport in Washington, April 5, 2020.

Joshua Roberts | Reuters

American Airlines lost more than $2.2 billion in the first three months of the year — its biggest quarterly loss since 2008 —as the coronavirus pandemic drove down demand for air travel.

American, like other airlines is facing a sharp decline in passengers because of coronavirus. U.S. airline travel volumes dropped about 95% in recent weeks from a year earlier as travelers stay home.

The air travel slump is a sharp turnaround for the industry that boasted its 10th straight year of profits in 2019 and had prepared for another uptick this year.

American’s revenue dropped nearly 20% on the year to $8.52 billion, slightly below analyst estimates.

“Never before has our airline, or our industry, faced such a significant challenge,” American’s CEO Doug Parker said in an earnings release.

American Airlines executives will hold an 8:30 a.m. call to detail results and its outlook.

This is breaking news. Check back for updates.

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