American Airlines posted $ 19 million in profit for the second quarter, its first since the pandemic began, thanks to nearly $ 1.5 billion in federal aid.
Thursday’s report highlighted the progress airlines are making in rebuilding after the coronavirus devastated air traffic – and how far they still have to go to fully recover.
American sales more than quadrupled year over year, but declined 37% from the same quarter of 2019.
Without American’s $ 54 billion stake in federal aid to help airlines meet wages and other special items, the Fort Worth, Texas-based airline would have lost $ 1.1 billion. That’s the US’s smallest adjusted loss in a quarter since 2019.
“We have taken a number of steps to consolidate our business … and it shows in our second quarter results,” CEO Doug Parker and President Robert Isom said in a memo to employees.
The number of daily passengers flying in the US has been increasing for more than a year and recently hit 2 million, or about 80% of pre-pandemic levels. Domestic vacation travel has roughly returned to normal, but business and international travelers – key customers for American and other major US airlines – are still largely absent.
American added return flights that were cut back last year. After convincing thousands of employees to quit or volunteer in 2020, it recently announced plans to heal the staff by recalling 3,300 flight attendants later this year and hiring 350 pilots this year and more than 1,000 to increase in the next year.
American earnings were 3 cents per share. The adjusted loss of $ 1.1 billion was equal to $ 1.69 per share, which wasn’t as bad as the analysts’ expected loss of $ 2.03 per share, according to a FactSet poll.
Revenue rose to $ 7.48 billion, beating analysts’ forecast of $ 7.32 billion.
In trading prior to the opening bell, American Airlines Group Inc. shares fell 1%.
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