July 24, 2020 / 4:31 PM / in 19 days

FACTBOX-U.S. airlines burn cash as COVID-19 hits travel demand

    July 24 (Reuters) - U.S. airlines are collectively bleeding
billions of dollars a month due to the COVID-19 pandemic, which
has brought travel to a virtual halt, leaving several of them
carrying huge costs as revenues plunged.
    Here is a look at the amount of cash some of the prominent
U.S. carriers are burning every day.

 AIRLINES     DAILY CASH    PROJECTED         LIQUIDITY   DEBT
              BURN IN Q2    CASH BURN                     
 ALASKA AIR   About $13     Sees cash burn    Held $3.8   Had total
              mln while     in July to be     billion in  adjusted debt
              exiting       higher than in    cash and    of $4.29 bln as
              March, and    June; says aims   marketable  of June 30
              $4 mln in     to achieve cash   securities  
              June          breakeven by      as of July  
                            year-end while    22          
                            operating at                  
                            levels 35% below              
                            2019; Says would              
                            likely need as                
                            many as 7,000                 
                            fewer active                  
                            employees in Q4               
                                                          
 AMERICAN     About $55     Expects Q3 burn   Ended Q2    Had $28.70 bln
 AIRLINES     mln on an     rates to be well  with $10.2  in long-term
              average       below Q2 rate,    bln of      debt and
                            and Q4 rates to   available   finance leases,
                            be lower than     liquidity,  net of current
                            one-third         including   maturities, as
                                              a net $3.6  of June 30
                                              bln raised  
                                              in the      
                                              quarter     
                                              through     
                                              offerings   
                                              of common   
                                              stock,      
                                              convertibl  
                                              e bonds     
                                              and         
                                              secured     
                                              bonds       
                                                          
 DELTA AIR    $100 mln in   Expects an        Had $15.7   Had total debt
 LINES        late March,   uptick in demand  bln in      and finance
              and $27 mln   and cost cuts to  liquidity   lease
              in June       help it achieve   at the end  obligations of
                            breakeven cash    of June     $24.64 bln as
                            burn by the end               of June 30
                            of the year                   
                                                          
 SOUTHWEST    $23 mln on    Sees Q3 burn      Ended Q2    Had $8.91 bln
 AIRLINES     an average    rate to be        with        of long-term
                            similar to Q2's   liquidity   debt less
                            $23 mln per day   of $15.5    current
                                              bln         maturities as
                                                          of June 30
 SPIRIT       Trending      Sees Q3 cash      Had         Long-term debt
 AIRLINES     from about    burn to range     unrestrict  and finance
              $9.5 mln in   between $3 mln    ed cash,    leases, less
              April to      and $4 mln        cash        current
              about $1.5                      equivalent  maturities of
              mln in June                     s, and      $2.33 bln as of
                                              short-term  June 30
                                              investment  
                                              s of $1.2   
                                              bln as of   
                                              June 30     
                                                          
 UNITED       $40 mln on    $15 mln-$20 mln   Total       Had $19.75 bln
 AIRLINES     an average    in Q4             liquidity   in long-term
                                              as of July  debt plus
                                              20 was      long-term
                                              about       obligations
                                              $15.2 bln;  under finance
                                              expects     and operating
                                              liquidity   leases as of
                                              at the end  June 30
                                              of Q3 to    
                                              be over     
                                              $18 bln     
                                                          
 
 (Compiled by Ankit Ajmera in Bengaluru; Editing by Shailesh
Kuber and Maju Samuel)
  
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