CAPA: US airlines retain focus on stockpiling cash and reducing cash burn

CAPA - Centre for Aviation, in a report entitled: 'COVID-19: demand grows, but US carriers still stockpiling cash', stated (22-Jun-2020) US airlines are continuing to look for opportunities to accumulate cash, as revenue is expected to drop in 2Q2020 and remain under pressure for a time. Despite an uptick in demand and some positive trends, US airlines remain focused on building cash reserves in order to decrease cash burn, at the cost of increasing the leverage they worked to decrease during the past decade. American Airlines is estimating daily cash burn of USD50 million in Jun-2020, while United Airlines projects a rate of approximately USD40 million for 2Q2020 and Delta Air Lines plans for a burn of USD30 million in Jun-2020. [more - CAPA Analysis]