American, Southwest post record annual losses as industry recovery remains elusive

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Southwest CEO Gary Kelly is optimistic about 2021 now that vaccination is underway. 'We're going to get there and when we do we're going to be ready and we'll do well,' he says. The airline reported earnings that sent the stock higher on Thursday.

on Thursday reported record annual losses and said don't expect a strong pickup in bookings in the coming months as new travel restrictions and a slow rollout of Covid vaccines cloud hopes for a near-term recovery.

American posted a net loss of $2.2 billion for the fourth quarter. Its revenues tumbled more than 64% to $4.03 billion, compared with $11.3 billion a year earlier. Sales were above analysts' forecasts for $3.88 billion for the quarter. Shares surged. American has more short interest in its shares than other U.S. airlines. Its stock price was up about 9% in afternoon trading.

International travel has so far been the most impacted in the pandemic. Before leaving office, the Trump administration ordered travelers to show a recent, negative Covid-19 test result before boarding flights to the U.S. That measure, which applies to both foreign and U.S. citizens alike, took effect on Tuesday.Chief Commercial Officer Andrew Nocella last week said the new rule was curbing demand particularly for flights to beach destinations in Mexico.

 

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