BENGALURU (April 22): American Airlines Group Inc reported a smaller quarterly loss on Thursday as rising vaccination rates prompted more people to opt for air travel.
Shares of the airline rose 3.2% to US$21.66 in pre-market trade as it said it reduced its cash burn rate to about US$27 million a day in the first quarter, compared with US$30 million in the previous quarter.
Demand for air travel is expected to pick up as more people receive vaccines, leading to a drop in Covid-19 infection rates and hospitalisations.
"Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand," chief executive officer Dough Parker said in a statement.
The company posted a net loss of US$1.25 billion, or US$1.97 per share, for the quarter ended March 31, compared with a loss of US$2.24 billion, or US$5.26 per share, a year earlier.
On an adjusted basis, the company lost US$4.32 per share.
Total operating revenue fell 52.9% to US$4.01 billion.
American Airlines ended the quarter with about US$17.3 billion in available liquidity.