An American Airlines Boeing 787-9 Dreamliner approaches for a landing on the Miami International Airport on December 10, 2021 in Miami, Florida.
Joe Raedle | Getty Images
American Airlines reported a $483 million profit for the third quarter and joined rivals in forecasting resilient travel demand, because the airline industry continues to shrug off concerns about an economic slowdown.
American’s revenue rose to a record $13.46 billion within the three months ended Sept. 30, up 13% from 2019 despite flying nearly 10% less, an indication passengers are still traveling despite higher fares. Its quarterly sales got here in barely ahead of analysts’ estimates.
“Demand stays strong, and it’s clear that customers proceed to value air travel and the flexibility to reconnect post-pandemic,” CEO Robert Isom said in an worker note Thursday after the corporate reported results.
Isom said on an earnings call that the airline will likely get back to 95% to 100% of its 2019 capability next 12 months, an expansion he said is restricted by slower aircraft deliveries and a pilot shortage on regional airlines.
American said it expects the strength to proceed through the top of the vacation season. For the fourth quarter it’s expecting total revenue to be up as much as 13% over three years ago, before the Covid pandemic. It forecast its capability in the course of the quarter to be down 5% to 7% from 2019 and is projecting adjusted per-share earnings of between 50 cents and 70 cents.
The corporate’s shares were down about 2% in morning trading.
Here’s how American performed within the third quarter, compared with Wall Street expectations in response to Refinitiv consensus estimates:
- Adjusted earnings per share: 69 cents vs. an expected 56 cents.
- Total revenue: $13.46 billion vs. an expected $13.42 billion.
American had raised its forecast for third-quarter revenue last week, sending shares higher.
Rivals United Airlines and Delta Air Lines also predicted that they’d be profitable through the top of the 12 months due to strong bookings and fares.
The industry has seen strong travel demand, well into the off-peak fall season, as consumers proceed to fly and, in lots of cases, pay greater than they were in 2019. All three major airlines have touted stronger unit revenues compared with three years ago, before the pandemic, a trend that is helping them greater than offset an increase in costs.
American’s fuel bill nearly doubled from a 12 months ago to greater than $3.8 billion, while labor costs rose 12% to $3.4 billion.
The Fort Value, Texas-based airline said its costs per available seat mile will likely rise 8% to 10% within the last three months of the 12 months over the identical quarter in 2019 and, for the total 12 months, as much as 13% over three years ago.
