AMERICAN, DELTA SAY RISE IN DEMAND HELPS SLOW CASH BURN
American Airlines Group, Inc. and Delta Air Lines Inc. said on Wednesday that a modest recovery in demand was helping to slow daily cash burn rates in June after the US government reported record low passenger numbers in April amid the coronavirus pandemic, David Shepardson and Tracy Rucinski reported for Reuters early on June 11, 2020.
US. airlines carried 3 million passengers in April, a staggering 96% decline from April 2019, the Transportation Department said on Wednesday. Total US airline passengers were the lowest since 1974 when the government began collecting monthly data. By comparison, there were 76.1 million total US airline passengers in April 2019.
US airlines have grounded nearly half of all airplanes, canceled hundreds of thousands of flights and the industry is still burning through billions o dollars a month. But many airlines are adding back flights in July as demand modestly rebounds.
Speaking to shareholders at the company’s annual meeting, American Airlines Chief Executive Doug Parker said while passenger numbers are improving, they are “still a fraction of what they were last year and particularly internationally.” That makes it difficult to know how many flights it will operate in the fall, when U.S. payroll aid for airlines runs out, and in the summer of 2021.