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Strong demand lifts American Airlines to profitable Q1 / Photo: Daniel SLIM - AFP/File
NYSE - LSE
Strong demand lifts American Airlines to profitable Q1
American Airlines reported a profitable first quarter Thursday and said persistently robust travel demand would translate to even stronger results in the current period.
"Demand for American's product remains strong," the company said in a press release.
"Domestic and short-haul international revenue continue to perform well and the airline has seen noticeable strength in long-haul international demand and yield performance this year."
Profits were $10 million, compared with a loss of $1.6 billion in the year-ago period.
Revenues were $12.2 billion, up 37 percent.
American projected second-quarter profits of between $1.20 and $1.40 a share, well above analyst expectations.
While the company confirmed its full-year profit target, it did not raise them, saying the forecasts include the anticipated impact of new labor agreements expected to lift wages.
The strong first-quarter results will enable American to make profit-sharing payments to employees for the first time in three years.
The company also pointed to headway on reducing debt. After entering the pandemic with higher debt levels than rivals, American said it is around 60 percent through its goal of reducing debt by $15 billion by the end of 2025.
Shares advanced 0.9 percent to $12.85 in pre-market trading.
S.Roth--BlnAP
