An American Airlines airplane sits on the tarmac at LAX in Los Angeles, California, U.S., March 4, 2019. Picture taken March 4, 2019. REUTERS/Lucy Nicholson
(Reuters) – American Airlines Inc (AAL.O) and smaller peer Spirit Airlines both suspended their 2020 financial results guidance on Tuesday, citing weakening travel demand due to the coronavirus outbreak.
American, the No.2 U.S. airline by revenue last year, also said it would cut domestic capacity by 7.5% in April and international by 10% for the upcoming summer season.
Airlines have been among the biggest corporate losers in the fast-spreading epidemic as tourists cancel trips to hit countries and businesses across the globe clamp down on anything other than essential travel.
American said a fall in fuel prices, as oil sank around a fifth in value on Monday, is expected to drive about $3 billion in 2020 cost savings.
Reporting by Rachit Vats in Bengaluru; Editing by Shinjini Ganguli and Patrick Graham