American’s report came a day after United
Airlines reported a $646 million loss for the fourth
quarter and said the omicron surge will cause it
to fly less than it hoped in the first half of this year.
United forecast that first-quarter revenue will
fall 20% to 25% and costs will rise from the same
period in 2019. Last week, Delta Air Lines posted a
$408 million loss.
Delta CEO Ed Bastian said bookings were
not likely to improve until late February, with
omicron making the seasonally weak first
quarter even weaker.
The airlines are hoping that the surge passes
quickly enough for travelers to get back on planes
during spring and summer.
Helane Becker, an airline analyst for Cowen, said
domestic leisure travel is above 2019 levels but the
virus is delaying the full re-opening of offices and
keeping business travelers grounded. Another
issue, she said, is continuing uncertainty over
restrictions on international travel.
“Consumers have a difficult time booking
international trips with any certainty given
changing rules and testing mandates,” Becker said
in a note to clients.