NEW YORK: American Airlines reported a staggering loss of USD 2.24 billion for the first quarter, when the coronavirus pandemic triggered a sharp drop in air travel.
The airline's revenue fell 19 per cent while costs continued to rise even as the virus spread.
The situation has grown more dire since the first quarter ended.
Air travel within the US has plunged 95 per cent from a year ago, judging by the number of people screened at the nation's airports.
Never before has our airline, or our industry, faced such a significant challenge, Chairman and CEO Doug Parker said.
American's massive loss compared with a profit of USD 185 million in the same quarter last year.
Parker highlighted American's efforts to bolster its liquidity building up enough cash, it hopes, to ride out the pandemic including getting USD 5.8 billion in federal aid to help cover payroll costs through September.
American estimated that it ended March with USD 6.8 billion in cash and other liquidity, including USD 2 billion that it raised during the first quarter.
The Fort Worth, Texas-based airline has cut its flying schedule by 80 per cent in May and June, grounded hundreds of planes, and offered early retirement and partially paid leave to cut labor costs.
Cheaper fuel caused by the collapse in energy prices will contribute to a reduction of more than USD 12 billion in its 2020 spending, the airline said.
We have a lot of difficult work ahead of us, Parker said in a statement that also cited uncertainty about the future.
American's loss dwarfed the USD 534 million loss reported last week by Delta Air Lines, which is slightly larger by revenue.
United Airlines was scheduled to issue first-quarter figures later Thursday.