- Boeing Co. delayed deliveries of more than three dozen flights and projected a deeper loss than analysts expected as the coronavirus pandemic continues to threaten corporate and international travel.
Eighteen 737 Max jets that were expected to be postponed this year and the next will be delivered in 2023 and 2024, the carrier said in a regulatory filing Tuesday. American Airlines will also take fourteen 787-8 planes at the end of the first quarter of the next year instead of this year. Another five of this wide aircraft will be converted to the 787- 9 version, with shipments delayed until 2023.
The first-quarter adjusted loss will be$ 4.29 to$ 4.41 a share, American said. Analysts projected$ 4.05, according to the average of the estimates compiled by Bloomberg. In 2019, revenues will decline from the same quarter to 62% before the pandemic decimated travel. The Fort Worth, Texas-based company previously said that the drop could reach 65%.
The American revenue projection meshed with a similar outlook from United Airlines Holdings Inc. as higher vaccinations against Covid 19 fuel a rebound in domestic flying. However, international and business demand has fallen to 80% below pre-pandemic levels.
The optimism over domestic travel was dealt a blow Tuesday as U.S. health officials call for an immediate pause in the use of Johnson Johnson's vaccine over concerns about blood clots.
American dropped 2.9% at 11: 03 a.m. to$ 22.25 in New York, with much of the decline spurred by the J& J news. Other airlines and cruise lines declined as well, Boeing rose to$ 251.71 less than 1% to$ 2001.91. The United States' first-quarter loss excluding credits linked to federal payroll aid and the costs of an employee early retirement program is expected to be as much as$ 2.8 billion, said the carrier.
The airline projected burning an average of$ 27 million a day in cash for the quarter compared to the previous guidance of$ 30 million. Its October burn rate turned positive in March, excluding principal and severance payments. For more articles like this, please visit bloomberg.com at bloomberg.com.
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