American Airlines (AAL), the world’s biggest carrier, has reported its first quarterly profit since
the COVID-19 pandemic began in March 2020.
The Fort Worth, Texas-based airline posted a second quarter profit of $476 million U.S., up from
just $19 million U.S. a year earlier as travel demand has come roaring back with the ending of
COVID-19 travel restrictions.
Revenue for Q2 totaled $13.4 billion U.S., up 12% from before the pandemic, even though
American flew 8.5% fewer passengers during the same period of 2019, the airline said in a
news release.
American Airlines has been more aggressive than other U.S. carriers in restoring capacity this
year. However, American said it now plans to limit its expansion this year, saying it will fly 8% to
10% below 2019 levels in the current third quarter even though revenue is still expected to grow
as much as 12% from three years ago due to higher airfares.
American Airlines joins other major U.S. carriers in scaling back its growth plans as it struggles
with flight cancellations and delays due to surging travel demand and staff shortages coming out
of the pandemic.
In the second quarter, American Airlines earnings per share (EPS) came in at $0.76 U.S., which
matched analysts’ forecasts, according to Refinitiv data. Revenue amounted to $13.42 billion
U.S. versus $13.40 billion U.S expected.
American Airlines stock is down 19% on the year at $15.21 U.S. per share.
