US carrier American Airlines reported losses of more than $2.2 billion for the first quarter of the year. The company attributed the loss to the massive slump in travel demand due to the global coronavirus pandemic.

In its latest earnings report, American Airlines reported a 20 percent drop in its revenues to $8.52 billion when compared to the same period last year. Following the release of its first-quarter earnings, the company's share prices plunged by 4.9 percent to $12.01. American Airlines' reported loss is the company's first quarterly loss since 2013 and the biggest it has incurred since 1998.

Like other airlines around the world, American Airlines is struggling to keep its light on given the sharp decline in passengers due to the shelter-in-place orders and lockdowns imposed by global governments to mitigate the spread of the coronavirus outbreak. In the US, airline travel volumes have dropped by more than 95 percent, strangling the nation's travel and tourism industry.

American Airlines CEO Doug Parker told investors in its earnings release that the company is facing a situation never before seen in the industry. The challenges that are facing the company were entirely unexpected as the industry had initially forecasted further growth in air travel demand this year. With the pandemic now in full swing, US airlines are being forced to cut routes, ground planes, and reduce ticket prices to unprecedented levels.

Similar to other companies that have been heavily hit by the economic impact of the virus, American Airlines has scrambled to cut costs wherever it can. It has already slashed its flights and halted all hiring, while also offering employees leave packages. According to the company, around 39,000 of its more than 133,000 employees have volunteered for unpaid or partially paid leaves.

The carrier is expecting an even bigger hit in the coming quarters, with Parker estimating that it could be burning through more than $70 million in cash per day this month and around $50 million per day in June. Among all the other US carriers, American Airlines started the year out with the most debt.

Parker previously mentioned in an interview that the company, along with most US businesses, will be coming out of the crisis with more debt. He added that borrowing money will be the only way to ensure liquidity in order to survive. The executive noted that the airline will make paying off its debt its top priority after the crisis is over.

The airline has managed to take advantage of government aim, receiving more than $10.6 billion in federal payout grants and loans under the country's $2.2 trillion coronavirus relief package. As part of the loan requirements, American Airlines has agreed to halt its furloughing of employees or cutting their pay until September 30.