A traveler wearing a protective mask walks past an American Airlines Group Inc. aircraft tail fin at Ronald Reagan National Airport (DCA), Arlington, Virginia, on Tuesday, June 9, 2020.
Andrew Harrer | Bloomberg | Getty Images
American Airlines shares rose up to 16% on Friday after the airline said that an increase in demand for travel will help daily cash burn from a previous forecast of $ 50 million to $ 40 million to lower.
Although the Fort Worth-based airline had softened its highs, it led the S&P 500 higher in the morning trade after announcing a message that it would be expecting to eliminate its cash consumption by the end of the year.
American reiterated its forecast that second quarter sales will still decrease 90% year over year when sales were close to $ 1
Until June 8, American Airlines had flown an average of 129,000 passengers a day and 62% of the flights were occupied, although capacity decreased by 70% compared to the previous year. In May, the airline flew 85,000 travelers a day with a load factor of 47% and a capacity of 75% from May 2019.
Despite the increased demand, the number of people passing through checkpoints at US airports has decreased 81% year over year, according to the Transportation Security Administration.
American has applied for a $ 4.75 billion federal loan under the CARES Act and announced on Friday that it would pledge part of its AAdvantage frequent flyer program as security. The program is valued at $ 19.5 to $ 31.5 billion.
American stocks have so far fallen 41% this year.