By Sloan T. Wilson, The Chicago Times
January 20, 2022
FORT WORTH, TX – American Airlines reported a loss of $931 million in the fourth quarter.
American Airlines said first quarter revenue is estimated to be lower by 22% in comparison to the first quarter of 2019.
American Airlines reported that revenue was $9.43 billion, which beat analysts’ expectations of $9.34 billion. Although the airline industry as a whole saw higher demand during the holiday season, the staffing shortages due to COVID-19 led to thousands of cancellations, which ate into to profits.
In comparison, United Airlines reported a $646 million loss for the fourth quarter and also blames COVID-19 for the poor showing. United Airlines predicts first quarter revenue will decline 25% and costs are expected to rise as inflation takes hold.
According to industry analysts, airline travel has clearly increased since the March 2019 shutdown, but the continued pandemic has been a millstone around the neck of airlines causing stagnant demand. In addition, inflation is starting to cause problems for the industry and travelers.
The Chicago Times 