American Airlines (AAL) has experienced recent strength in domestic and short-haul international bookings

March 29, 2021 7:35 AM EDT

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American Airlines (NASDAQ: AAL) disclosed:

In light of the current operational environment during the COVID-19 pandemic, American Airlines Group Inc. (“AAG”) and American Airlines, Inc., a wholly owned subsidiary of AAG (together with AAG and its other consolidated subsidiaries, the “Company”), are providing an update on recent performance.

Capacity: The Company now expects its first-quarter system capacity (total available seat miles) to be down approximately 40% to 45% versus the first quarter 2019. This compares to the Company’s previous guidance of down 45% versus the first quarter 2019. The Company will continue to adjust its fleet and capacity plans based on anticipated levels of demand and presently expects to reactivate most of its aircraft in the second quarter to meet anticipated levels of demand. No guidance is provided at this time regarding capacity for the second quarter of 2021.
Bookings: Due to the Centers for Disease Control and Prevention order to require a negative COVID-19 test for entry into the U.S. at the beginning of 2021, the Company experienced softness in its bookings at the beginning of the first quarter. However, as infection and hospitalization rates have materially declined and vaccine distribution has increased during the quarter, the Company has experienced recent strength in domestic and short-haul international bookings. As of March 26, the Company’s seven day moving average of its net bookings is approximately 90% of the level experienced in 2019, with a domestic load factor of approximately 80% during that same period. The Company presently expects this strength in bookings to continue through the end of the first quarter and into the second quarter. However, investors are cautioned that visibility regarding forward bookings remains limited.
Investors are cautioned that, notwithstanding any other information that may have been reported in the media, the foregoing is the sole guidance that the Company is providing at this time. The Company may update the foregoing at any time prior to the release of first quarter earnings in April 2021 but undertakes no duty to do so.

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