American Airlines reported the company’s end-of-year financials on Thursday. A down year for the travel industry in 2020 as a whole with the COVID-19 pandemic still keeping people at home or traveling by car for vacations.
The airline giant reported $4 billion in revenue for the fourth quarter in 2020, a net loss of $2.2 which is down 64% in a year-over-year analysis. American posted a full-year loss of $8.9 billion overall.
American Airlines chairman and CEO Doug Parker said, “Our fourth-quarter financial results close out the most challenging year in our company’s history.”
He went on to say, “However, we couldn’t be prouder of the American Airlines team and the great things they accomplished last year. Through collaboration, resourcefulness and hard work, our team did its part to keep the economy moving. The American team flew more customers than any other airline in 2020, and they did so safely and with the utmost care.
“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,” Parker added. “We are confident that the actions we have taken to improve our customer experience, enhance our network and increase our efficiency position us well for the future.”
American isn’t the only airline to report a loss in 2020. Southwest Airlines reported its first annual loss since 1972.
News of America’s losses sent their stock skyrocketing during the early hours of Thursday’s trading session. About 50% higher from the close of the markets on Wednesday.
— Ian Shepherdson (@IanShepherdson) January 28, 2021
American was forced to furlough over 900 Charlotte-based employees and 32,000 employees nationwide in September due to lack of flights and restrictions. The major American airline headquartered in Fort Worth, Texas calls Charlotte one of their major hubs for business, currently employing nearly 20,000 people.