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28 Jan 2021 | 14:57

American Airlines posts record quarterly loss, rallies on Reddit speculation

(Sharecast News) - US carrier American Airlines posted a record quarterly loss on Thursday as it cautioned of a difficult few months ahead as a result of ongoing Covid-19 travel restrictions. American Airlines reported a net loss of $2.2bn in the fourth quarter, with revenues tumbling more than 64% to $4.03bn even though sales were above analysts' forecasts for $3.88bn.

Adjusted losses per share came to $3.86 each, ahead of expectations for losses of $4.11,

The airline also warned that it capacity in the first quarter would likely be down 45% year-on-year, while revenues were said to be 60-65% lower for the first three months of the year.

Despite the poor performance, American shares skyrocketed after a mention on Reddit's Wall Street Bets forum, the same group that has sent GameStop shares into overdrive in recent days.

As of 1455 GMT, American Airlines shares had surged 26.87% to $21.01 each.
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