American Airlines ( NASDAQ: AAL ) shares jumped by more than 14% on Thursday.
Analysts were quick to say the move is not based on the state of American’s business. American Airlines had a record net annual loss of $8.9 billion.
- Fourth-quarter revenue of $4.0 billion, down 64% year over year on a 53% year-over-year reduction in total available seat miles (ASMs).
- Fourth-quarter net loss of $2.2 billion, or ($3.81) per share. Excluding net special items1, fourth-quarter net loss was $2.2 billion, or ($3.86) per share.
- Full-year net loss of $8.9 billion, or ($18.36) per share. Excluding net special items2, full-year net loss was $9.5 billion, or ($19.66) per share.
- Ended fourth quarter with approximately $14.3 billion of total available liquidity. Company expects to end the first quarter of 2021 with approximately $15.0 billion in total available liquidity.
- Incorporated more than $1.3 billion of permanent non-volume, non-fuel efficiency cost-saving measures into 2021 operating plan.
“Our fourth-quarter financial results close out the most challenging year in our company’s history,” said American Airlines Chairman and CEO Doug Parker. “However, we couldn’t be prouder of the American Airlines team and the great things they accomplished last year. Through collaboration, resourcefulness and hard work, our team did its part to keep the economy moving. The American team flew more customers than any other airline in 2020, and they did so safely and with the utmost care.
“As we look to the year ahead, 2021 will be a year of recovery. While we don’t know exactly when passenger demand will return, as vaccine distribution takes hold and travel restrictions are lifted, we will be ready. We are confident that the actions we have taken to improve our customer experience, enhance our network and increase our efficiency position us well for the future.”
American took a number of steps in 2020 to respond to the pandemic and strengthen its business, with an emphasis on supporting its team members, customers and communities; reducing costs; and improving its liquidity position.