American Airlines (AAL) slips to Q4 loss as revenues plunge

American Airlines (AAL) slips to Q4 loss as revenues plunge

Along with the rollout of new vaccines, that is giving airlines and others in the travel industry hope for improvement this summer.

"As we look to the year ahead, 2021 will be a year of recovery. While we don't know exactly when passenger demand will return, as vaccine distribution takes hold and travel restrictions are lifted, we will be ready".

Shares of Southwest gained about 6% before the start of regular trading.

The news came two days after plane maker, Boeing revealed a record loss of almost $US12 billion for 2020, including an $US8.4 billion loss in the 4th quarter after it wrote $US6.5 billion off the value of its yet to fly 777-X plane.

Shares of American were up 8.2 percent to $17.91 in mid-morning trading.

"Troubled balance sheets and high short stock positions have become the immediate target of these squeezes and they fit right into that category".

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Helane Becker, an analyst at Cowen, said the company could use the share spike as an opportunity to pay down debt with an equity offering. Business and worldwide travel, which are both crucial to American and rivals such as Delta and United, are expected to recover more slowly.

The airline slipped to a loss of $3.86 per share in the December-quarter, on an adjusted basis, from earnings of $1.15 per share in the prior-year period.

Revenue fell 65% to $2.01 billion, falling short of the analysts' average forecast of $2.12 billion in the Zacks survey.

The fourth-quarter loss of $2.18 billion amounted to $3.86 per share, after removing special gains.

The company said market conditions in the first quarter of 2021 were similar to those at the end of 2020, but while the loss in the fourth quarter was smaller than expected, market watchers viewed the stock's erratic movement as unrelated to those figures.

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