The Coronavirus cases in the United States are rising, and it is affecting American Airlines’ revenue projection for August.
Covid Is Affecting August Revenue
American Airlines revealed earlier today that its revenue for August is lower than anticipated, thanks to the surge in Covid-19 cases across the United States. The surge in Covid cases has led to a decline in bookings, and American Airlines believe it could get worst if the situation is not brought under control.
Vasu Raja, American Airlines’ chief revenue officer, told investors that the current recovery is a choppy one for the company, and they had expected it to be that way. Vasu added that “Given the fluidity of the current demand environment, we are not ready to make definitive adjustments to our capacity plans or guides at this point in time.”
According to the chief revenue officer, American Airlines recorded a better-than-expected revenue in July. However, the increase in Covid cases across the United States has resulted in weaker near-term bookings and higher cancellations.
The delta variant of Covid-19 has been rapidly rising over the past few weeks. However, the authorities are working hard to ensure people get vaccinated over the next few months. With enough people vaccinated, airline activities could resume normally across the United States.
AAL Up By 1.5% Today
Despite the grim news from American Airlines, the company’s stock price is up by 1.5% over the past 24 hours. At the time of this report, AAL is trading at $20.15 per share. Year-to-date, the company’s stock price is up by over 30%.
AAL stock chart. Source: FXEMPIRE
American Airlines began 202 trading at $15 per share, but it has experienced rapid growth, hitting a peak of $25 per share in June. However, AAL slightly retracted in July, but it began to recover this month.
The increase in the number of Covid vaccinations across the United States is one of the key reasons for the surge in the company’s activity last month.
This article was originally posted on FX Empire
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