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American Airlines sees fourth-quarter cash burn at high end of guidance - Metro US

American Airlines sees fourth-quarter cash burn at high end of guidance

FILE PHOTO: A Boeing 737 Max airplane is pictured on the tarmac at Dallas Fort Worth Airport before a media flight to Tulsa

(Reuters) -American Airlines said on Friday it expects its fourth-quarter average daily cash burn to be at the high end of its previously forecasted range of between $25 million and $30 million.

The U.S. airline industry is still losing billions of dollars every month as travel demand remains weak and recent coronavirus travel advisories have discouraged holiday travel.

“Rising COVID-19 case counts and associated travel restrictions..have resulted in a slowing of net bookings growth, which has persisted into December,” American said in a statement.

The U.S. airline now expects to end the fourth quarter with about $14 billion in total available liquidity. (https://bit.ly/3lAWb24)

Delta Air Lines warned on Thursday it would lose about $2 million more than forecast each day in the fourth quarter, but kept a target to halt its cash burn next spring.

Airlines are hoping that vaccine prospects will start lifting demand throughout 2021 but do not expect a full recovery for some time.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Krishna Chandra Eluri)

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