On the 22nd local time, “American Airlines” and “Southwest Airlines” among the four major U.S. airlines announced their third-quarter financial reports, continuing to continue with huge losses. Among them, the third-quarter revenue of “American Airlines” plunged by 73% year-on-year, with a loss of US$2.4 billion, but it was said to be “slightly better than expected.”
“American Airlines” has suffered losses for three consecutive quarters. This month, due to the failure to obtain further financial assistance from the US federal government, the company laid off 19,000 employees and allowed 20,000 employees to “retire early” or “long vacations.” As a result, the average daily expenses in the third quarter fell from US$58 million in the second quarter to US$44 million.
“Southwest Airlines” lost US$1.2 billion in the third quarter, which is said to have set a record for the highest loss in a single quarter. Revenue fell 68% year-on-year. It is understood that “Southwest Airlines” used the “employee voluntary resignation” plan to cut expenses and is negotiating with the labor union, hoping to reach a salary reduction agreement on the condition that “no layoffs or mandatory unpaid leave before the end of next year” will be reached.
