American Airlines AAL improved its expectations for fourth-quarter 2021 total revenues despite multiple flight cancellations during the Christmas and New Year holiday travel period. This, in turn, drove shares of the company up 1.2% at the close of business on Jan 11.Per a SEC filing dated Jan 11, American Airlines now expects total revenues to decline approximately 17% in the fourth quarter of 2021 from the comparable period in 2019. Previously, the airline estimated the same to decrease around 20%.However, due to mass-scale flight cancellations during the Christmas travel period through the end of the year, American Airlines now predicts capacity to decline 13% in the fourth quarter from the 2019 level, compared with the previous expectation of a decrease of 11-13%. The flight cancellations resulted from staffing shortages as a large number of pilots and flight attendants fell sick with COVID-19, thanks to the emergence of the Omicron variant. Severe winter weather in parts of the United States also caused flight cuts. The schedule cuts were not just limited to American Airlines. Other U.S. carriers were equally affected by the spike in Omicron cases and inclement weather conditions.American Airlines Group Inc. Price American Airlines Group Inc. price | American Airlines Group Inc. QuoteDue to reduced capacity, AAL incurred higher costs. It now expects cost per available seat mile to increase 13-14% in the fourth quarter from the 2019 level. Previously, the carrier estimated the same to increase 8-10%. Apart from reduced capacity, a holiday operational incentive program in the fourth quarter and a write down of excess spare parts inventory pushed up the company’s unit costs.American Airlines estimates average fuel price per gallon to be $2.36 for the fourth quarter, compared with the previous expectation of $2.43-$2.48. Pre-tax margin, excluding net special items, is expected to be between -12% and -13% (past forecast: between -16% and -18%).American Airlines expects total liquidity of approximately $15.8 billion at the end of the fourth quarter.Zacks Rank & Key PicksAmerican Airlines carries a Zacks Rank #4 (Sell).Some better-ranked stocks within the broader Transportation sector are as follows:Expeditors International of Washington EXPD carries a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 29.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Expeditors have appreciated around 32% in a year.ArcBest Corporation ARCB carries a Zacks Rank #2 (Buy). The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 27.4%.Shares of ArcBest have surged more than 100% in a year.Schneider National SNDR carries a Zacks Rank #2. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21%.Shares of Schneider National have rallied more than 17% in a year. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report ArcBest Corporation (ARCB): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research