American Airlines turns small profit due to $1.5 billion relief
Fort Worth (Texas): American Airlines eked out a second-quarter profit of $19 million, its first since the pandemic started, thanks to nearly $1.5 billion in federal relief.
The report on Thursday underscored the progress airlines are making in rebuilding after the coronavirus crushed air travel and how much farther they still have to go to fully recover.
American's revenue jumped more than four-fold from a year ago, but was down 37 from per cent the same quarter in 2019.
Excluding American's share of $54 billion in federal relief to help airlines cover payroll costs, and other special items, the Fort Worth, Texas-based carrier would have lost $1.1 billion. That is American's smallest adjusted loss in any quarter since 2019. We have taken a number of steps to solidify 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 airline passengers flying in the US each day has been rising for more than a year and recently hit 2 million, or about 80 per cent of pre-pandemic levels.
Domestic leisure travel is roughly back to normal, but business and international travelers key customers for American and other huge US airlines are still mostly absent.