Earnings

American Airlines posts profit thanks to federal aid, revenue improves

Products You May Like

American Airlines on Thursday reported a $169 million profit for the third quarter thanks to more than $990 million in federal payroll support.

Revenue for the quarter totaled $8.97 billion down about 25% from the same period of 2019 but up from the $3.17 billion American brought in a year ago. That was ahead of analysts’ expectations of sales of $8.94 billion. Without one-time items, like government payroll support, American lost 99 cents per share, less than $1.04 per-share loss analysts expected.

“While we don’t like reporting losses, this was our smallest quarterly loss since the pandemic began,” American’s CEO Doug Parker and the carrier’s president, Robert Isom, wrote in a note to employees.

American’s shares were up 1.2% in premarket trading.

For the fourth-quarter, American expects its revenue to fall by about 20% from 2019, when it generated $11.3 billion. It also said its capacity will be down 11% to 13% compared with two years ago.

The Fort Worth, Texas-based airline forecast pretax margins, excluding special items, in the fourth quarter to be between negative 16% and negative 18%.

Products You May Like

Articles You May Like

Salesforce surges on revenue beat, AI growth prospects – here’s our new price target for the stock
Here are the last days to ship a holiday package with FedEx, UPS and USPS to ensure gifts arrive on time
‘Small caps are going to become more in favor in 2025′: VettaFi’s research head doubles down on winning group
Donald Trump Jr. joins PSQ Holdings’ board, sending shares skyrocketing 270%
Tech stocks hit first all-time high since July

Leave a Reply

Your email address will not be published. Required fields are marked *