An American Airlines Boeing 777-300 wide-body aircraft as seen on final approach for landing at London Heathrow International Airport in England, United Kingdom.
Nicolas Economou | NurPhoto | Getty Images
American Airlines on Thursday reported a profit in the latest quarter and said it expects to be in the black in the third quarter, another sign of strong demand for travel, even with high fares.
American reported a second-quarter profit of $476 million, up from $19 million a year earlier, even as the carrier still benefited from federal coronavirus wage support last year.
Second-quarter revenue of $13.4 billion was 12 percent more than before the pandemic, even though American flew 8.5 percent less than the same period in 2019, the airline said.
American has been more aggressive than rivals United Airlines and Delta Air Lines in restoring capacity, but American’s chief executive said the carrier will limit its expansion this year.
“As we look to 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,” said CEO Robert Isom in a memo to staff.
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 high ticket prices persisted through the summer.
US stocks fell 2% in premarket trading after the results were released.
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 vs. 76 cents expected.
- Total revenue: $13.42 billion vs. $13.40 billion expected.
Unit costs rose 45% in the second quarter from three years earlier as the carrier, like its rivals, faced a spike in fuel and other costs.
American executives will hold a call to discuss the results at 8:30 a.m. ET on Thursday. They are likely to face questions about future travel demand, capacity, labor negotiations with pilots and flight attendant unions, hiring progress and aircraft needs.
United late on Wednesday reported its first post-pandemic profit without government aid, but said it would scale back its growth plans through 2023.
This is breaking news. Check back for updates.
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