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American Airlines CEO Expects Travel Recovery After Vaccine Distribution

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American Airlines CEO Expects Travel Recovery After Vaccine Distribution

American Airlines Group Inc (NASDAQ: AAL) reported better-than-expected earnings Thursday morning.

Despite the coronavirus pandemic, American Airlines was able to travel more Americans than any other airline in 2020.

CEO Doug Parker told CNBC's Phil LeBeau that 2021 will be a year of recovery and said that once the COVID-19 vaccine is distributed to the people, the travel industry will see a major boom in demand.

The first quarter of 2021 is expected to be similar to the fourth quarter, the CEO said. 

With no change in demand yet due to the vaccine distribution, earnings and cash flow will be similar, with an expected burn rate of nearly $30 million per day, Parker said.

The people now dominating airline traffic are leisure travelers visiting National Parks, resort destinations and other attractions, he said. 

With people able to work remotely, the demand for constant travel has significantly decreased, the CEO said. 

American Airlines shares were up 9.42% at $18.12 at last check Thursday. 

 

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