American Airlines Boeing 777-300 wide-body aircraft seen on the last approach for landing at London Heathrow International Airport in England, United Kingdom.
Nicolas Economou | NurPhoto | Getty pictures
American Airlines delivered its first quarter result since the pandemic started without government support, but joined competitors to scrap growth plans after a series of disruptions this year. The carrier predicted a profit in the third quarter on Thursday, but another sign of strong travel demand, even at high prices.
American posted a second-quarter profit of $ 476 million, up from $ 1[ads1]9 million a year earlier, although the carrier still benefited from federal wage support for coronavirus last year.
Second-quarter revenue of $ 13.4 billion was up 12% from before the pandemic, although American flew 8.5% 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 the U.S. CEO said the airline would limit expansion this year.
“As we look at the rest of the year, we have taken proactive steps to build additional buffer into our schedule and will continue to limit the capacity of the resources we have and the operating conditions we face,” said CEO Robert Isom in a note to staff .
The airline said it would fly 8% to 10% below 2019 levels in the third quarter, but said revenues would increase as much as 12% from three years earlier as high prices continue through the summer.
US stocks fell nearly 3% in pre-market trading after published results.
Here’s how the carrier performed in the second quarter, compared to Wall Street expectations according to Refinitive consensus estimates:
- Adjusted earnings per share: 76 cents against the expected 76 cents.
- Total income: $ 13.42 billion against the expected $ 13.40 billion.
Unit costs rose by 45% in the second quarter from three years earlier, when the carrier, like its rivals, faced a jump in fuel and other expenses.
U.S. leaders will hold a call to discuss results at 8:30 a.m. Thursday. They are likely to face questions about future travel demand, capacity, job interviews with their pilots and flight attendants’ unions, employment progress and flight needs.
United reported late Wednesday their first profit since the pandemic without government assistance, but said they would cut growth plans through 2023.
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