American Airlines Reports Profits Despite Trailing Jet Fuel Costs

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New York (AFP) – American Airlines on Thursday reported a profitable second quarter as the ebb from the Covid-19 pandemic drove record revenues despite the hit from rising fuel costs.

The major US carrier said its first profitable quarter since the start of the pandemic was due to operations rather than government support programs.

Profits were $476 million, up from just $19 million a year ago.

Revenue jumped about 80% to $13.4 billion, the highest in company history. Kerosene costs have more than doubled compared to the 2021 period.

Expensive tickets fueled the surge. From April to June, revenues were 12% higher than the pre-pandemic quarter of 2019, even though capacity was 8.5% lower.

American reported that the trend continues in the third quarter, when it expects revenue 10-12% above 2019 levels, with capacity down 8-10%.

Leisure travel remains above pre-pandemic levels, while Americans have also seen an improvement in business travel and international bookings, Chief Executive Robert Isom said in a letter to employees.

“Making sure America can benefit from the continued recovery has been our collective goal, and the second quarter is proof that our stocks are delivering positive results,” Isom said.

“There is no better validation of this than reporting our first quarterly profit since the start of the pandemic.”

The shares fell 3.2% to $14.73 in premarket trading.

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