American Airlines Echoes Delta in Warning of Demand Slowdown
(Bloomberg) -- American Airlines Group Inc. is seeing a slowdown in demand because of surging coronavirus cases, signaling a weaker outlook heading into the year-end holidays.
After a strong start for the fourth quarter, a deceleration in net bookings growth began before Thanksgiving and has persisted into this month, American said in a regulatory filing Friday. As a result, the company expects its daily cash consumption to be at the high end of an earlier forecast of $25 million to $30 million.
The company’s caution follows a similar warning Thursday by Delta Air Lines Inc., which said it may burn more cash than expected in the fourth quarter because of the slowdown. While passenger totals jumped over the Thanksgiving holiday, they were still only about 40% of last year’s levels.
American said it expects to end the year with more than $14 billion in liquidity.
The shares climbed 1.6% to $16.35 ahead of regular trading in New York, extending gains amid optimism about coronavirus vaccines and the potential for more federal stimulus to tide airlines over during a tough winter.
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