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American Airlines offers missiles after narrower than expected losses, sales and load factor



Shares of American Airlines Group Inc. AAL,
+ 6.63%
rose 54.5% to an 11-month peak in market trading on Thursday after the airline reported narrower-than-expected fourth-quarter losses and a revenue and load factor that exceeded expectations. The company posted a net loss of $ 2.18 billion, or $ 3.81 per share, from a net profit of $ 414 million, or 95 cents per share, for the period a year ago. Excluding recurring elements, the adjusted loss per share was $ 3.86, beating the consensus on FactSet̵

7;s loss of $ 4.11. Revenue fell 64% to $ 4.03 billion, but surpassed the FactSet consensus of $ 3.88 billion. The load factor dropped to 63.4% from 84.7%, above the FactSet consensus of 62.9% as traffic decreased by 66.7% while capacity decreased by 55.4%. The daily rate of burning money in the quarter was $ 30 million, compared to nearly $ 100 million in April. The company expects to end the first quarter with $ 15.0 billion in total available liquidity. “As we look at the coming year, 2021 will be a year of recovery,” said CEO Doug Parker. “Although we do not know exactly when the demand for passengers will return, as the spread of vaccines is delayed and travel restrictions are lifted, we will be ready.” Shares rose 51.2% in the last three months to Wednesday, while US Global Jets ETF JETS,
-1.66%
rose 29.5% and the S&P 500 SPX,
-2.57%
has gained 14.7%.


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