Live Updates: American Airlines Posts Record Quarterly Revenue as Airfares and Demand Rise
American Airlines posted record quarterly revenue on the back of an increase in consumer travel demand this summer, the group said Thursday.
The Fort Worth, Texas-based carrier reported net income of $476 million, or $0.68 per share, in line with analysts’ estimates, on revenue of $13.4 billion, ” highest in company history,” chief executive Robert Isom wrote in a memo to employees. Thursday.
Revenues were up 12.2% from the same period in 2019, despite US flights down 8.5%. On an adjusted basis, the airline posted its first quarterly profit since the start of the Covid-19 pandemic.
Despite the increase in airfares, “the operating environment this quarter was challenging,” Isom said. Weather issues throughout June “had a ripple effect throughout our operation”.
The largest U.S. carrier “will continue to limit capacity to the resources we have and the operating conditions we face,” he said.
Summer flight schedules have been disrupted in recent weeks as airlines scramble to ramp up operations to meet customer demand. Carriers cited staffing issues, inclement weather and air traffic control problems among their problems.
American predicted a profitable third quarter, driven by strong domestic leisure demand and improving corporate, government and international revenues.
Rival United Airlines also reported its first profitable quarter since the start of the pandemic yesterday, but scaled back its flight expansion plans for 2023.
Americans consumed 997 million gallons of fuel in the second quarter at about $4.03 a gallon. The carrier expects fuel prices to moderate between $3.73 and $3.78 per gallon in the third quarter.
The airline again stopped predicting full-year profitability. It expects to fly 7.5-9.5% less in 2022 than in 2019.