FORT WORTH, Texas — American Airlines and two smaller carriers gave more proof Thursday of the recovery in air travel, posting better-than-expected profit for the fourth quarter, while Southwest Airlines lost money because of massive flight cancellations last month.
The airline had signaled it would lose money, but the adjusted loss of 38 cents per share was worse than the 7 cents per share that Wall Street expected.The Transportation Department is investigating whether Southwest scheduled more flights than it could realistically expect to handle, which it says would violate federal laws against deceptive trade practices. Southwest says its schedule was “thoughtfully designed” and the airline had ample staffing.
Cowen analyst Helane Becker said in a client note that Southwest’s cancellation of flights during the holiday season appears to be having a lingering impact. Meanwhile, American reported a profit of $803 million. Excluding special items, earnings per share totaled $1.17. Analysts expected $1 per share, according to a FactSet survey.Revenue was a fourth-quarter record of $13.19 billion, a 40% increase from a year earlier and better than analysts expected, leading to record annual revenue.
Source: Holiday News (holidaynews.net)
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