American Airlines reports smaller loss as pickup in travel offsets omicron blip
Charles Payne: Can earnings turn this market around?
Gary B. Smith and Quincy Krosby provide insight on record inflation’s impact on the stock market on ‘Making Money.’
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.
LIFTING MASK MANDATES WILL MEAN A ‘GREAT REBOUND IN TRAFFIC’: TAMPA INTERNATIONAL AIRPORT CEO
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
AAL | AMERICAN AIRLINES GROUP INC. | 19.48 | -0.11 | -0.56% |
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.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
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.
CLICK HERE TO READ MORE ON FOX BUSINESS
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Vinay Dwivedi)
Source: Read Full Article