American Airlines (AAL) Earnings 1Q 22

American Airlines Boeing 787-9 Dreamliner takes off from Los Angeles International Airport on November 11, 2020 in Los Angeles, California.

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American Airlines forecast its pre-tax profit for the second quarter on Thursday, as strong bookings help it cover rising fuel costs.

American, the country’s largest airline, said March was the first month since the pandemic began when revenue exceeded 2019 levels and said bookings continued to rise. It forecast sales for the second quarter up to 8% higher than the same period three years ago.

It expects to fly up to 94% of the 2019 schedule, more than competitors Delta Air Lines and United Airlines, which have been more conservative in restoring capacity throughout the pandemic.

American is the third largest airline to report quarterly results. United said Wednesday it expects to return to profit this year thanks to increased bookings and fares, echoing similar comments a week earlier than Delta. United forecast the airline shares rose higher in trading after the end of Wednesday.

U.S. stocks rose more than 10 percent in early trading on Thursday, up from about 5 percent, fueled by United results. United rose more than 8%.

Here is the performance of the Americans in the first quarter compared to what Wall Street expected, based on the average estimates compiled by Refinitiv:

  • Adjusted loss per share: $ 2.32 versus an expected $ 2.40
  • Total revenue: $ 8.9 billion compared to the expected $ 8.826 billion

American posted a net loss of $ 1.6 billion in the first quarter, generating nearly $ 8.9 billion in revenue, more than double the $ 4 billion in sales a year ago and more than analysts’ estimates. Sales decreased by 16% compared to the same quarter of 2019.

The Fort Worth, Texas-based airline said it paid $ 2.80 a gallon of fuel in the first quarter, up 65 percent from last year. The American stopped compensating for fuel after the fall in oil prices in 2014.

U.S. officials will have a call with analysts and the media to discuss the results at 8:30 p.m. ET.

American Airlines (AAL) Earnings 1Q 22

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