American Airways posted its highest income of the pandemic within the fourth quarter as bookings rose, however nonetheless reported a loss because the proliferation of the Omicron variant harm bookings.
“Over the previous yr, we have seen durations of excessive journey demand offset by durations of decrease demand as a consequence of new COVID-19 variants,” American CEO Doug Parker, who’s stepping down on the finish of March, mentioned in an earnings launch on Thursday. “This volatility has created probably the most tough planning surroundings in industrial aviation historical past.”
United Airways warned Wednesday and Delta Air Traces final week that omicron would delay journey restoration.
Parker advised CNBC’s “Squawk Field” that bookings for journey in a month or two are stronger than they’re now and that fares are more likely to rise as enterprise vacationers return.
The yr was a difficult one for American and different airways making an attempt to extend air site visitors, however workers shortages exacerbated routine issues just like the climate and triggered a whole bunch of flight cancellations.
American elevated pay for flight attendants for the vacation and provided bonuses to different staff, a transfer different airways took nicely earlier than the Omicron-related staffing shortages across the year-end vacation.
American mentioned it employed 16,000 folks final yr and reiterated its purpose of hiring 18,000 this yr.
American misplaced $931 million on income of $9.43 billion within the fourth quarter, down from $11.3 billion in income within the final three months of 2019 earlier than the pandemic. Adjusted for one-time gadgets, American misplaced $1.42 a share in comparison with an analyst estimate of $1.48 a share.
For the primary quarter, American expects income to say no 20% to 22% from the identical interval in 2019, when it generated $10.6 billion in income. The capability for the primary three months is 90% to 92% restored.
US shares misplaced 3% in morning commerce.
Here is how American carried out within the fourth quarter versus Wall Avenue expectations, based mostly on common estimates compiled by Refinitiv:
- Adjusted earnings per share: a lack of $1.42 versus an anticipated lack of $1.48
- Whole gross sales: $9.43 billion versus $9.38 billion anticipated.
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