American Airlines Loses $931 million In Fourth Quarter

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.