Sat, 28 May 2022

American Airlines reports $931 million fourth-quarter loss

Robert Besser
25 Jan 2022, 06:06 GMT+10

DALLAS, Texas: American Airlines has reported losses of $931 million in the fourth quarter of 2021.

Additionally, officials have said the Omicron Covid surge will slow the airline's recovery by two to three months.

American Airline's first-quarter revenues are also expected to be 20 to 22 percent lower than the first quarter of 2019. The airline will also have slightly fewer scheduled flights than two years ago, according to American officials.

While the rapid spread of the Omicron variant has harmed all airlines, it is also true that the airlines industry remains upbeat about spring and summer travel.

Incoming American Airlines CEO Robert Isom, who takes over on March 31, said the airline expects to return to profitability later this year.

Of note, corporate travel is just 40 percent of its pre-pandemic level, he said.

American Airlines saw increased demand at Thanksgiving and Christmas, but as Omicron struck at the end of the year, American Airlines was hampered by staffing shortages caused by Omicron.

Of note, American hired 16,000 people last year and plans to hire 18,000 this year.

Also, American Airlines reported that annual revenues were $9.43 billion, more than double in 2021 and slightly above the $9.34 billion forecast from analysts.

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