American Airlines Flight 718, the first commercial Boeing 737 MAX flight in the United States since regulators withdrew from the ground for 20 months in November, takes off from Miami, Florida, on December 29, 2020.
Marco Bello | Reuters
American Airlines reported a record quarterly loss on Thursday and faces tough months, as new travel restrictions and the slow deployment of cloud vaccines await a short-term recovery.
The U.S. recorded 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 exceeded analysts’ forecasts of $ 3.888 billion for the quarter. Shares rose 47% in premarket trading. American has a much shorter interest in its shares than other American airlines.
The Texas-based Fort Worth airline said it expects capacity in the first quarter of 2021 to drop 45% compared to 2019, before the coronavirus pandemic slows travel demand. It expects revenue to drop from 60% to 65% for the first quarter compared to the same months in 2019.
Below is the U.S. performance in the fourth quarter, compared to what Wall Street expected, according to average estimates compiled by Refinitiv:
- Adjusted EPS: A loss of $ 3.86 versus an expected loss of $ 4.11.
- Revenue: $ 4.03 billion versus projected revenue of $ 3.888 billion.
American Airlines executives will discuss the company’s results and prospects in a call at 8:30 a.m. ET.
Southwest Airlines, in early Thursday, reported its first annual losses since 1972 and said it would remain conservative with capacity until March, citing weak demand.
Dallas-based Southwest expects an average basic cash burn of about $ 17 million a day during the first quarter, “as a result of continued demand and a more seasonal travel period in the January and February 2021, in addition to rising fuel prices. ” That exceeds the $ 12 million a day in the last three months of 2020.
He predicted that January revenue would drop from 65% to 70% compared to 2019, slightly better than a 75% decline previously forecast after the stabilization of cancellations. Southwest said February revenue is likely to fall from 65% to 75% compared to the same month in 2019.