American Airlines reported a $931 million loss in the final three months of 2021.
The company has stated that this is due to the Omicron variant delaying the industry’s comeback after almost two years of the pandemic. Total revenue is expected to be down 20% to 22% compared to the first quarter of 2019, said the company, NBC DFW reports.
“As we close out the second year of operating in a global pandemic, we are incredibly proud of the American Airlines team,” said Doug Parker, CEO for American Airlines. “Over the past year, we have experienced a period of high travel demand countered by a period of decreased demand due to new COVID-19 variants.
Parker said 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.
“Looking ahead, I’m excited about the future of American with Robert Isom as its new CEO,” he said. “While we still have work to do as the recovery from the pandemic continues, I have no doubt the best is yet to come for American.”
Last month, American Airlines announced that Isom would be replacing Parker as CEO of the company when Parker retires in March.
Compared to 2020, American Airlines saw an improvement in 2021 with its performance in on-time arrivals, on-time departures, and completion factor, according to their press release.
The company had announced its first profit in July 2021 since the start of the pandemic, reporting an income of $19 million after factoring in $1.4 billion in special credits, including those from the government’s Payroll Support Program Agreements. American Airlines would have suffered a $1.1 billion loss without the special credits.
Their fourth quarter ended with a total of $15.8 billion in available liquidity, which is the highest liquidity balance at the end of a year that the company has ever had.