American Airlines (NASDAQ:AAL) on Thursday reported a record quarterly loss and faces difficult months ahead as new travel restrictions and a slow rollout of vaccines cloud hopes for a near-term recovery.
American posted a net loss of $2.2 billion in the fourth quarter. Revenues tumbled more than 64% to $4.03 billion, compared with $11.3 billion. Sales were above analysts’ forecasts for $3.88 billion for the quarter. Shares were up 47% in premarket trading. American has much more short interest in its shares than other U.S. carriers.
Fort Worth, Texas-based airline said it expects capacity in the first quarter of 2021 to be down 45% compared with 2019, before the coronavirus pandemic sapped travel demand. It expects revenues to be off 60% to 65% lower for the first quarter compared with the same months of 2019.
Adjusted EPS came out in a loss of $3.86 versus an expected loss of $4.11. Revenue was $4.03 billion versus expected $3.88 billion in revenue.
Said CEO Doug Parker, "Our fourth-quarter financial results close out the most challenging year in our company’s history However, we couldn’t be prouder of the American Airlines team and the great things they accomplished last year.
"Through collaboration, resourcefulness and hard work, our team did its part to keep the economy moving. The American team flew more customers than any other airline in 2020, and they did so safely and with the utmost care."
AAL shares got liftoff $2.73, or 16.5%, to $19.29.
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