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Robust travel demand boosts American Airlines' Q3 profits / Photo: - - BOEING/AFP/File
Robust travel demand boosts American Airlines' Q3 profits
American Airlines reported a strong third quarter Thursday, capitalizing on robust demand for travel that the company sees persisting as Covid-19 worries recede.
Echoing commentary from rivals such as United Airlines and Delta Air Lines, American scored a 13 percent jump in revenues compared with the 2019 period on lofty ticket prices, despite flying around 10 percent less capacity.
"Demand remains strong, and it's clear that customers in the US and other parts of the world continue to value air travel and the ability to reconnect post-pandemic," said American Chief Executive Robert Isom.
Profits for the quarter ending September 30 was $483 million, more than double the year-ago level with a 50 percent increase in revenues to $13.5 billion, a quarterly record.
After a devastating industry downturn during the worst days of the coronavirus pandemic, US carriers have begun to prosper in 2022 as more governments pare back restrictions.
Executives point to several factors that are overriding worries about inflation and rising recession risk: continuing "pent-up" travel demand following Covid-19 lockdowns; the shift to hybrid working that allows more travel; and industry-wide capacity constraints that are lifting plane ticket prices.
American released fourth-quarter forecasts that show continued strength, with its projection of between 50 and 70 cents per share in profits easily topping analyst expectations.
Shares rose 2.4 percent to $14.32 in pre-market trading.
X.Herrmann--BlnAP
