American Airlines Flight 718, the first American Boeing 737 MAX commercial flight since regulators lifted a 20-month basis in November, will take off from December 29, 2020 from Miami, Florida.
Marco Bello | Reuters
American Airlines reported a record quarterly loss on Thursday and will face tough months ahead as new travel restrictions and a slow introduction of vaccines hope for a short-term recovery.
American posted a net loss of $ 2.2 billion in the fourth quarter. Revenue fell more than 64% to $ 4.03 billion, compared to $ 11.3 billion. Sales were higher than analysts’ forecasts for $ 3.88 billion for the quarter. Shares rose 47% in market trading. American has a much larger stake in its shares than other American airlines.
Fort Worth, Texas airport, said capacity would decline by 45% in the first quarter of 2021 compared to 2019, before the coronavirus pandemic weakened demand for travel. The company expects revenue to be 60% to 65% lower during the first quarter than in the same months of 2019.
Here’s how America performed in the fourth quarter, compared to what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted EPS: A loss of $ 3.86 versus an expected loss of $ 4.11.
- Revenue: $ 4.03 billion versus expected revenue of $ 3.88 billion.
American Airlines executives will discuss the company’s results and prospects during an ET call at 8:30 p.m.
Earlier on Thursday, Southwest Airlines reported its first annual loss since 1972, saying it would remain conservative with capacity until March, citing weak demand.
Southwest Dallas expects average cash burns to be around $ 17 million a day in the first quarter, “due to continued soft demand and a seasonally weaker travel period in January and February 2021, as well as rising fuel prices.” This is higher than the $ 12 million per day in the last three months of 2020.
The forecast is that January revenue will fall by 65% to 70% compared to 2019, slightly better than a decline of as much as 75% it previously predicted after cancellations stabilized. Suidwes said the revenue from February would probably fall by 65% to 75% compared to the same month of 2019.