American Airlines warns 13,000 employees of furloughs

Consumer

DALLAS (AP) – American Airlines this week said it will send furlough notices to nearly 13,000 employees as a second round of federal payroll aid is set to expire next month.

merican Airlines Group Inc. reported a loss of $2.2 billion in the fourth quarter and $8.9 billion for all of 2020 after earning nearly $1.7 billion the year before.

Fourth-quarter revenue dropped more than 64%, to $4.03 billion, and the Fort Worth, Texas-based airline predicted a similar trend for the first quarter of 2021 — it expects revenue to lag year-ago numbers by 60% to 65%.

American expects to burn about $30 million a day in the first quarter, roughly the same pace as the fourth quarter.

Shares of American rose as much as 31% before closing up 9%. Analysts say American is now caught up in volatile trading that has seen other stocks, notably GameStop, become wrapped up in a battle between small investors and short sellers. Parker declined to discuss the situation or say whether American would issue new stock while the share price is elevated.

The fourth-quarter loss amounted to $3.86 per share, after removing special gains. Analysts expected a loss of $3.92 per share, according to a survey by Zacks Investment Research.

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