American Airlines reports smaller loss as pickup in travel offsets Omicron blip

posted on 21st April 2022 by Eddie Saunders
American Airlines reports smaller loss as pickup in travel offsets Omicron blip

Abhijith GanapavaramReuters News

American Airlines Group Inc reported a smaller adjusted first-quarter loss on Thursday, as a strong pickup in travel in March helped offset a blip in January caused by the Omicron variant of COVID-19, sending its shares up 8.5% before the bell.

The airline and its subsidiaries had to call off more than 3,000 flights in January, according to flight-tracking service FlightAware, as the industry struggled with mass cancellations due to adverse weather and an outbreak of the highly infectious Omicron variant.

The first-quarter was impacted by high fuel costs due to the Ukraine war and persistent pilot and ground staff shortages.

Airlines, however, have cut capacity and a surge in air travel demand has also allowed them to pass on high fuel costs to consumers.

Last week, Delta Air Lines Inc said robust consumer demand led to a “solid” profit in March, prompting the Atlanta-based airline to forecast a “meaningful” profit this year.

On Thursday, American Airlines reported an adjusted loss of $1.51 billion, or $2.32 per share, for the quarter ended March 31, compared with a loss of $2.74 billion, or $4.32 per share, a year earlier.

Operating revenue rose to about $8.9 billion from about $4 billion a year earlier.

(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Vinay Dwivedi)