American Airlines closed out 2020 with a fourth quarter loss of $2.2 billion, leading to a record annual loss of $8.9 billion.
Annual revenue plunged 62% in 2020 to $17.4 billion., the airline said.
It has been ‘the most challenging year in our company’s history’ CEO Doug Parker said.
"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."
The airline has managed to reduce its daily cash burn to about $30 million from nearly $100 million as the pandemic began to hot travel demand.
Like its peers, American has shrunk its fleet by retiring older aircraft, and reduced its workforce though early retirements.
It expects a similar story for the first quarter of 2021 before a slow, gradual recovery.
At the same time Southwest Airlines also posted a loss – the first for the airline in 48 years.
Written by Ray Montgomery, US Editor
