July 21 (Hfrance. fr) - American Airlines American Airlines ( AAL.O) and Southwest Airlines (LUV.N) posted quarterly profits on Thursday aided by a resurge in bookings and federal aid, and predicts improved income trends in the coming months as more people return to travel.
US airlines, which received $ 54 billion in COVID-19 relief for workers' wages and also took on debt to survive a deep industry crisis, are now deleveraging their balance sheets and rushing to ensure a rebound.
"We are in the midst of an unprecedented recovery ", said US managing director Doug Parker during the a call to investors where the company also presented its intention to repay around $ 15 billion in debt by the end of 2025.
American, world's largest airline, says it hasn't seen any drop in bookings linked to recent rate hikeCOVID-19 infection, echoing recent comments from Delta Air Lines (DAL.N) and United Airlines (UAL.O) . learn more
Domestic pleasure travel almost returned to 2019 levels, and American said it expects a full recovery in domestic business travel next year.
International travel, however, remains hampered by entry bans, although American has said that whenever restrictions are lifted, there is a "rapid and dramatic increase in bookings.
American's revenues, the mostworld's largest irline, jumped 361% to $ 7.48 billion, beating expectations as it carried 44 million passengers, five times more than a year ago.
The rapid ramp-up has created operational challenges for both American and Southwest, which have had to cancel flights due to labor shortages. Both have recalled pilots and flight attendants and are renewing their hiring plans.
Southwest General Manager Gary Kelly has stated that the company was "intensely focused on improving our operations as we restore our network to meet demand.
The Southwest's total operating revenue, which is more focused on domestic travel, rose nearly 300% to $ 4 billion a year earlier, but fell about 32% from 2019. learn more
More flights and higher fuel prices will weigh on the airline's costs in the third quarter, he warned.
American, the world's largest carrier, posted a profit of $ 19 million for the second quarter through June, including federal aid, compared to a loss of $ 2.07 billion a year earlier. find out more
Southwest posted net income of $ 348 million, or $ 0.57 per share, including assists. Excluding items, Southwest's net loss was larger than analysts had expected, reaching the shares.
However, both airlines said they wereprofitable in June even without federal funds, a first since the start of the pandemic in early 2020.
Alaska Air Group (ALK.N) announced Thursday a profit of 397 million dollars, or $ 3.15 per share, in the second quarter, including aid. Reporti ng by Tracy Rucinski in Chicago and Sanjana Shivdas and Ankit Ajmera in Bengaluru; Edited by Nick Zieminski
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