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American Results Beat Expectations in The First Quarter

American expects profits to return during the second quarter, supported by travel demand, following impressive first-quarter results

American Airlines said it expects to return to profit in the second quarter before tax, boosted by booking numbers that helped it offset higher fuel prices, the latest example of an airline revealing that demand growth has outpaced expense growth.

Note that American, which is the largest airline in the country, had previously announced that last March was the first month in which its revenues exceeded 2019 levels since the beginning of the Covid epidemic, and confirmed that reservations continue to rise. Read more [Flight Prices Rise With Increased Demand for Travel].

The airline expected that second-quarter sales will grow by 8% compared to the same quarter 3 years ago, despite its plans to operate 6-8% less flights than its flight schedule during the same three months of 2019, but its flight schedule is still considered the best in terms of The recovery compared to rivals Delta and United, which have been conservative about their operating capacity during the pandemic. Read more [Delta is Expected to Return to Profits After the 1Q Results].

American shares are up 4%, giving up some of the day’s gains after the entire market is down, while United is up 9%, Delta is up 3% and South East is up 2%.

American’s adjusted loss during the first quarter was $1.6 billion, or $2.32 per share, better than analysts’ expectations, which was a loss of $2.40, as for total revenue of $8.9 billion, beating expectations of $8.826 billion, but sales, Although it doubled compared to the first quarter of last year, it is still considered a decline of 16% compared to the first quarter of 2019.

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