American Airlines Reports Record Loss of $8.9 Billion for 2020 Amidst Pandemic

American Airlines announced fourth quarter and full-year results for the calendar year 2020.

The world’s largest airline reported a fourth-quarter loss of $2.2 billion, compared to a profit of $414 million in the same period the previous year.  For the full calendar year, American said it lost $8.9 billion, its biggest on record, amidst the coronavirus pandemic-induced decline in travel, compared to net income of $1.7 billion in 2019.

“Our fourth-quarter financial results close out the most challenging year in our company’s history,” said Doug Parker, the airline’s CEO.

Fourth-quarter revenue was $4.0 billion, down 64%, while revenue for the year was $17.3 billion, a year-over-year decline of 62%.

The company said it had reduced its daily cash burn rate³from nearly $100 million in April 2020 to approximately $30 million in the fourth quarter, citing the airline’s revenue and cost-cutting initiatives throughout the year.

American also said it flew more passengers than any other airline in 2020.

(Photo: Accura Media Group)