American Airlines release second-quarter 2021 report; will improve balance sheet
American Airlines Group Inc.has published its second-quarter 2021 financial results. Find out the details below:
- Second-quarter net profit of $19 million, or $0.03 per diluted share. Excluding net special items, second-quarter net loss of $1.1 billion, or ($1.69) per share.
- Second-quarter revenue of $7.5 billion, up 87 percent sequentially from the first quarter of 2021.
- Ended the second quarter with approximately $21.3 billion of total available liquidity, a record for the company.
- Accelerated the deleveraging process with prepayment of $950 million spare parts term loan.
- Company plans to pay down approximately $15 billion of debt by the end of 2025.
In March 2021, CEO Doug Parker revealed the company’s 2021 Green Flag Plan. The aims is to focus on doubling double down operational excellence, reconnect with customers, build on team momentum and passionately pursue efficiencies.
“We have taken a number of steps to solidify our business through our Green Flag Plan and it shows in our second-quarter results,” said American’s chairman and CEO Doug Parker. “We have reshaped our network, simplified our fleet and made our cost structure more efficient, all to create an airline that will outperform competitors and deliver for customers. The green flag plan has dropped and we are ready thanks to the tremendous efforts and dedication of the American Airlines team.”
American is committed to improving its balance sheet. The company now expects to reduce its debt by more than $15 billion by the end of 2025 versus its previous guidance of $8 billion to $10 billion.
American is committed to strengthening its business and returning to profitability by focusing on its three strategic objectives: create a world-class customer experience, make culture a competitive advantage and build American to thrive forever.
The company’s daily cash burn rate turned positive for the second quarter to a cash build rate of approximately $1 million per day. American ended the second quarter with a record of approximately $21.3 billion of total available liquidity. The company expects to keep near-term liquidity at elevated levels but expects to step down its target liquidity to approximately $10 billion to $12 billion in 2022.