According to the U.S. Consumer News and Business Channel (CNBC), the net loss of American airlines in 2020 may exceed $35 billion due to the epidemic, and analysts expect that the financial pressure on American airlines will not be eased until the second half of 2021.
Analysts said that American airlines were under great financial pressure in 2020 due to the ban on some international routes and the sharp decline in domestic flight demand.
Aviation stocks fell the most in years in 2020. Shares of American Airlines (AA) fell 45%, Delta shares fell 31%, and United Airlines (UA) fell 51% in the past 12 months. Southwest fell 14%, ushering in the airline’s first annual loss in 40 years.
Analysts say that the net loss of U.S. airlines will exceed $35 billion in the first year of 2020.
After the emergency use of the coronavirus vaccine was approved in early December 2020, several airlines predicted that American Airlines is expected to reduce losses or even turn losses into profits in 2021 because the coronavirus vaccine will effectively enhance optimism about travel.
However, as the mutant coronavirus appears in many countries around the world and the number of the epidemic in the United States continues to soar, analysts expect that the financial pressure facing American Airlines will not be eased until the second half of this year at the earliest.