Despite continuing challenges brought on by the evolving novel coronavirus, Fort Worth-based American Airlines said on Thursday it performed well in the fourth quarter.
American reported posting $9.43 billion in revenue for the quarter, down 17% from the same period in 2019, but the highest level since before the pandemic began in 2020. The company reported slightly more than $4 billion in revenue in the same period a year ago.
“Over the past year, we have experienced periods of high travel demand countered by periods of decreased demand due to new COVID-19 variants,” said American Chairman and CEO Doug Parker, in a statement. “This volatility has created the most challenging planning environment in the history of commercial aviation. Yet, the American team has delivered, growing back faster and further than any other U.S. airline to meet this unpredictable demand.”
The airline said it transported 165 million passengers in 2021, more than any other U.S. carrier.
Yet, the quarter included still more challenges of the lingering pandemic as the emerging Omicron variant dampened what airline executives expected to be a smooth holiday season of travel. Instead, airlines canceled more than 30,000 U.S. flights between Christmas Eve and Jan. 11. Covid infections sidelined airline workers, and winter storms further impacted operations throughout many parts of the country.
American said compared to its rivals it performed better in operational metrics during the month. The company’s on-time performance in December was better than any December in years prior to the pandemic, according to American officials.
For the full-year 2021, American said it achieved its best performance in on-time arrivals, on-time departures, and completion factor since the pandemic, despite flying significantly more than any other airline.
Despite an increase in revenue, American posted a net loss of $931 million in the quarter. Still, that compares favorably to a loss of $2.18 billion during the same period in 2020. On a per-share basis, the company posted a loss of $1.44, compared with a loss of $3.81 a share a year earlier.
The company said it expects the first quarter of this year to be down between 20% and 22% compared with the first quarter of 2019. American said it expects first-quarter capacity to be down roughly 8% to 10% compared with the same period in 2019.
Omicron isn’t the only challenge as airlines grapple with steeper costs for labor and fuel.
In its statement, the company said it ended the fourth quarter with $15.8 billion of total available liquidity, the highest year-end liquidity balance in company history.
“Looking forward, our focus in 2022 will be to continue running a reliable airline, returning to profitability, and delivering on our long-term plan to deleverage the balance sheet,” said American President and incoming CEO Robert Isom.