American Airlines not considering Chapter 11, demand improving: CEO

FILE PHOTO: An American Airlines Boeing 737 jet sits at a gate at Washington’s Reagan National airport with the U.S. Capitol building in the background as the novel coronavirus (COVID-19) pandemic continues to keep airline travel at minimal levels and the U.S. economy contracts in the first quarter at its sharpest pace since the Great Recession, in Washington, U.S. April 29, 2020. REUTERS/Kevin Lamarque

(Reuters) – American Airlines Group Inc’s (AAL.O) is not considering a Chapter 11 bankruptcy filing, CEO Doug Parker said in response to a question at a conference on Wednesday, but said he does expect the overall U.S. airline industry to be 10% to 20% smaller in the summer of 2021.

American’s revenues are still down by about 90% due to the coronavirus pandemic, but demand is improving and passengers are feeling more comfortable flying, with American’s planes about 56% full over the long U.S. Memorial Day weekend, albeit a drastically reduced flying schedule, he said.

Reporting by Tracy Rucinski

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