American Airlines (AAL) 2Q 22 results

American Airlines Boing 777-300 jumbo jet as seen on final approach for landing at London Heathrow International Airport in England, UK.

Nicolas Economou | NurPhoto | Getty Images

American Airlines on Thursday reported a profit last quarter and said it expects to be in the black in the third quarter, another sign of strong travel demand, even at high prices.

American posted second-quarter profit of $476 million, down from $19 million a year earlier, though the carrier still had federal coronavirus payroll support last year.

Second-quarter revenue of $13.4 billion was up 12% from pre-pandemic, even though American flew 8.5% less than the same period in 2019, the company said. airline company.

American has been more aggressive than rivals United Airlines and Delta Air Lines in restoring capacity, but American’s CEO said the carrier will limit expansion this year.

“As we look to the rest of the year, we have taken proactive steps to create an additional buffer in 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 to Staff.

The airline said it would fly 8% to 10% below 2019 levels in the third quarter, but said revenue would rise by up to 12% from three years earlier as high fares continue until summer.

U.S. stocks were down 2% in premarket trading after the earnings release.

Here’s how the carrier fared in the second quarter, relative to Wall Street expectations according to Refinitiv consensus estimates:

  • Adjusted earnings per share: 76 cents against 76 cents expected.
  • Total income: $13.42 billion vs $13.40 billion expected.

Unit costs jumped 45% in the second quarter from three years earlier as the carrier, like its rivals, faced increased fuel and other expenses.

American executives will hold a call to discuss the results at 8:30 a.m. ET Thursday. They are likely to face questions about future travel demand, capacity, its labor negotiations with its pilots and flight attendant unions, progress on hiring and aircraft needs.

United announced their first profit since the pandemic on Wednesday evening without government help, but said they would scale back their growth plans through 2023.

This is breaking news. Check back for updates.

cnbc Business

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button