American Airlines Boeing 777-300 wide-body aircraft as seen on final approach to land at London Heathrow International Airport in England, United Kingdom.
Nicholas Economo | Norfoto | Getty Images
American Airlines It reported Thursday that it turned a profit last quarter and said it expects to be in the black in the third quarter, another sign of strong travel demand, even with prices rising.
American reported second-quarter profit of $476 million, up from $19 million a year earlier, even though the carrier was still benefiting from last year’s federal payroll support.
The airline said second-quarter revenue of $13.4 billion was 12% higher than it was before the pandemic, even though US planes were 8.5% lower than in the same period in 2019.
“As we look into the rest of the year, we have taken proactive steps to build additional buffer into our schedule and will continue to limit capacity to the resources we have and the operating conditions we face,” CEO Robert Isom said in a note.
The airline said it would fly 8% to 10% below 2019 levels in the third quarter, but said revenue would rise as much as 12% from three years earlier as higher prices continued into the summer.
US stocks fell 2% in pre-market trading after the results were announced.
Here’s how the carrier performed in the second quarter, compared to Wall Street expectations according to Refinitiv’s consensus estimates:
- Adjusted earnings per share: 76 cents versus the expected 76 cents.
- Total revenue: $13.42 billion versus the $13.40 billion forecast.
Unit costs rose 45% in the second quarter of three years before that, as the carrier, like its competitors, faced a jump in fuel and other expenses.
America’s executives will hold a call to discuss the results at 8:30 a.m. ET Thursday. They will likely encounter questions about future travel demand, capacity, business conversations with pilots and flight attendant unions, recruitment progress, and aircraft needs.
United late Wednesday reported its first profit since the pandemic without government help, but said it would Cut growth plans Until 2023.
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