American Airlines Boeing 777-300 wide-angle aircraft, seen in the latest approach to land at London Heathrow International Airport in England (UK).
Nicolas Economou | NurPhoto | Getty Images
American Airlines released its first quarterly profit since the pandemic began without government support, but joined competitors to cut back on growth plans after several disruptions this year. The carrier forecast earnings for the third quarter on Thursday, however, another sign of strong travel demand, albeit at high prices.
The U.S. made $ 476 million in second-quarter earnings, up from $ 19 million a year earlier, even though the carrier was benefiting from federal coronavirus payroll support last year.
In the second quarter, $ 13.4 trillion in revenue rose 12% before the pandemic, even though Americans flew 8.5% less than in the same period in 2019, the airline said.
It has been more aggressive than rivals American United Airlines and Delta Air Lines in regaining capacity, but the U.S. CEO said the company would limit its deployment this year.
“Looking ahead to the year, we have taken proactive steps to create additional buffer in our calendar and will continue to limit our ability to the resources we have and the operating conditions we face,” CEO Robert Isom said in a statement. workers.
The airline said it would fly 8% to 10% below 2019 levels in the third quarter, but said revenue from the previous three years would rise by 12% as summer fares remain high.
American shares fell nearly 3% in pre-market 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 was expected compared to 76 cents.
- Total income: $ 13.420 billion was expected to be $ 13.4 billion.
Unit costs rose 45% in the second quarter from three years earlier as carriers, like rivals, suffered a jump in fuel and other spending.
American executives will call for a discussion of the results on Thursday at 8:30 a.m. ET. They are likely to ask questions about future travel demand, capacity, job interviews with pilots and aircraft assistant unions, recruitment progress, and aircraft needs.
United announced its first profit from the pandemic on Wednesday night without government support, but said it would cut growth plans until 2023.
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American Airlines (AAL) 2Q 22 earnings
Source link American Airlines (AAL) 2Q 22 earnings