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American Airlines (AAL) Q2 earnings 22


American Airlines announces first quarterly profit since Covid pandemic started without government aid but joined competitors in scale up growth again plans after a series of hiatuses this year. However, the carrier on Thursday forecast third-quarter profit, another sign of strong travel demand, even at high prices.

American posted second-quarter profit of $476 million, up from $19 million a year earlier, although the airline still benefited from federal coronavirus payroll support last year.

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

Americans are more aggressive than their opponents United Airlines and Delta Airlines in restoring capacity, but American executives said the airline will limit its expansion this year.

“For the remainder of the year, we have taken proactive steps to build additional buffers into our schedule and will continue to limit capacity to the resources we have and operating conditions we face,” CEO Robert Isom said in a note. Staff.

The airline said it will fly below 8% to 10% of 2019 in the third quarter but said revenue will grow by up to 12% from three years earlier as high fares continue into the summer.

Here are the carrier’s second-quarter performance, versus Wall Street expectations according to Refinitiv consensus estimates:

  • Adjusted earnings per share: 76 cents versus 76 cents expected.
  • Total revenue: $13.42 billion versus $13.40 billion expected.

Unit costs jumped 45% in the second quarter from 2021 as the airline, like its rivals, faced spikes in fuel and other costs.

Alaska Airlines posted $139 million in net income on record revenue of nearly $2.7 billion when the company reported its own second-quarter results on Thursday. It also said it would be cautious about ramping up capacity.

“As is the case with the economy as a whole, supply chains remain disrupted due to the pandemic,” Chief Executive Officer Ben Minicucci said on an earnings call following the report. “We are working with our key partners closer than ever and will be more cautious in planning our operations and capacity until we see a level of stability and predictability. higher.”

In the third quarter, Alaska plans to reduce its flight schedule by 5% to 8% year-on-year, and expects revenue to grow by as much as 19% from the previous three years.

United late Wednesday reported its first profit since the pandemic without the help of government aid, but said it would cut its growth plan to 2023.

US shares fell 7.4% on Thursday, United lost 10.2% and Alaska fell 0.5%, while S&P 500 ended up almost 1% higher.

Correction: This story has been updated to reflect that American Airline’s second-quarter unit costs increased by 45% compared to 2021. An earlier version misrepresented the comparative timing.



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