American Airlines loss narrows on strong holiday travel demand

FILE PHOTO: A jet from American Eagle, a regional branch of American Airlines (AA), takes off past other AA aircraft at Ronald Reagan Washington National Airport in Arlington, Virginia, U.S. December 3, 2021. REUTERS/Chris Helgren/File Photo

(Reuters) -American Airlines Group Inc reported a smaller fourth-quarter loss on Thursday, boosted by strong travel demand during the holiday season.

U.S. carriers benefited from millions of Americans flying in November and December, with the Transportation Security Administration screening here nearly 21 million travelers during the 10-day Thanksgiving holiday.

Demand during Christmas Eve and New Year’s Eve was strong as well, although mass flight cancellations towards the end of the year due to rising COVID-19 cases and inclement weather meant airlines could not fully tap that demand.

Shares of the company were up 1.1% before the bell on Thursday.

Fort Worth, Texas-based American Airlines had ramped up capacity and staffing to meet the demand surge during the key season. Available seat miles, the carrying capacity of an airplane available to create revenue, rose 84% from a year earlier.

The airline’s adjusted net loss fell to $921 million, or $1.42 per share, for the quarter ended Dec. 31, from $2.2 billion, or $3.86 per share, a year earlier when the COVID-19 pandemic hammered air travel.

Total operating revenue rose to $9.43 billion from $4.03 billion a year earlier.

Source: Read Full Article