An American Airlines plane landed at Miami International Airport in Miami, Florida on June 16, 2021.
Joe Riddle | Getty Images
American Airlines announced a third-quarter profit of US$169 million on Thursday, thanks to federal wage support of more than US$990 million.
Total revenue for the quarter was US$8.97 billion, a decrease of about 25% from the same period in 2019, but higher than the US$3.17 billion that Americans brought in a year ago. This exceeded analysts’ expectations of $8.94 billion in sales. Without one-time items, such as government salary support, American Airlines lost 99 cents per share, which was lower than analysts’ expectations of a loss of $1.04 per share.
“Although we don’t like reporting losses, this is our smallest quarterly loss since the pandemic began,” American Airlines CEO Doug Parker and the airline’s president Robert Isom wrote in a report to employees .
For the fourth quarter, American Airlines expects its revenue to fall by approximately 20% from the $11.3 billion in 2019. It also stated that compared with two years ago, its production capacity will drop by 11% to 13%.
The Fort Worth, Texas-based airline predicts that its pre-tax profit margin excluding special items in the fourth quarter will be between minus 16% and minus 18%.
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