Shares of American Airlines Group Inc.
AAL,
-2.68%
dropped 3.4% in premarket trading Tuesday, after the air carrier provided a first-quarter adjusted loss estimate was wider than Wall Street’s projections. The company disclosed in an 8-K filing with the Securities and Exchange Commission said it expects a first-quarter net loss of between $1.2 billion and $1.3 billion. Excluding nonrecurring items, such as $1.95 billion in net special credits related to the Payroll Support Program Extension Agreement, the net loss is expected to be between $2.7 billion and $2.8 billion. The FactSet consensus for adjusted net losses is $2.34 billion. American said it expects revenue to be down 62% from the pre-pandemic first quarter of 2019, in line with the guidance range provided in January of a decline of 60% to 65%. The FactSet revenue consensus of $4.16 billion implies a 60.7% decline for the same period in 2019. The company cut its first-quarter average daily cash burn estimate to about $27 million from $30 million, as the average daily cash burn for the month of May was just $4 million. The company is slated to report first-quarter results on April 22. Separately, American said it has deferred the delivery of five Boeing Co.
BA,
-1.13%
787-8 aircraft to 2023, and will convert the order to 787-9 aircraft, while the remaining 14 deliveries of 787-8 aircraft have been rescheduled to to occur by the end of the first quarter of 2022. American’s stock has shot up 47.5% over the past three months through Monday, while the U.S. Global Jets ETF
JETS,
-1.90%
has climbed 20.0% and the S&P 500
SPX,
-0.02%
has gained 8.4%.
