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American Airlines posts USD8.9 billion annual loss
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
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TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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