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The company’s operations were hurt by the coronavirus-led drop in travel demand, which negatively affected passenger revenues. The company incurred losses in five consecutive quarters. Management expects system capacity for the second-quarter to fall in the 20-25% range compared with the second-quarter of 2019. As more people have gotten vaccinated though, bookings are improving.
As of March, the company had $14 billion in cash compared with only $2.4 billion in short-term debt. However, AAL’s profit margin is dismal at -61.5%. Sales are down an average of 20.4% per year over the past five years, highlighted by a drop of 61.5% in the last year. The good news is that analysts forecast revenue to surge 340.2% year over year in the second quarter.
