American Airlines has formally announced that it’s to retire five types of aircraft totalling over 120 aircraft
80 aircraft will go from the airlines main fleet and 41 from the regional fleet provided to contractors.
9 A330-300’s, 34 757-200’s, 17 767-300ER’s had already been expected but the decision is now formal and immediate. In addition 20 E190’s from the main fleet, and 22 ERJ-140’s with 19 CRJ-200’s will also be withdrawn from its contractor fleets.
42 737-800’s and 15 A330-200’s along with an unspecified number of A320ceo’s and more regional jets are under review.
The 767’s and E190’s have already left the fleet, the 757-200’s and A333’s are grounded and may not return to service unless their is sufficient demand, but they will be gone by year end.
American has been pilling up a huge cash reserve, it already had $6.8 billion in cash at the end of March. That will grow to $11 billion by the end of the June quarter, including $5.8 billion in Federal payroll support provided under the CARES Act. The company plans to pursue an additional $4.6 billion loan under the Stimulus Law, bringing its projected third quarter cash to $17.34 billion.
The airlines expenses are around $70m per day through to June and expects to cut that to $50m a day by the end of that month.