American Airlines significantly increases quarterly profit, improves outlook

The company's performance in the quarter was boosted by strong demand as well as a significant drop in fuel costs.

American Airlines nearly tripled its net profit to $1.34 billion (nearly CZK 29 billion) in the second quarter of this year from $476 million a year ago.

High demand as a driver

The company’s performance in the quarter was boosted by strong demand as well as a significant drop in fuel costs. “It was another fantastic quarter,” said Chief Executive Robert Isom. American Airlines, like other airlines, is benefiting from a surge in demand for air travel following the downturn caused by the covid-19 pandemic.

The company now expects to report full-year earnings in the range of three to 3.75 dollars per share this year. In its previous forecast, full-year earnings were estimated at $2.5 to $3.5 per share.

Successful competitors

Domestic rivals Delta Air Lines and United Airlines also moved to improve their full-year outlook this month after strong second-quarter results.

American Airlines’ fuel costs fell by almost a third in the second quarter thanks to lower prices. The company saved about $1.3 billion compared with the same period last year, the AP reported.

Source Czech Press Office

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