July 22 (Hfrance.fr) - American airlines American Airlines (AAL.O) and Southwest Airlines (LUV.N) released quarterly earnings on ThursdayAided by a rebound in bookings and federal aid, they are committed to solving problems in their operations as passengers return in droves.
Airlines quickly cut flights when the coronavirus hit the industry in early 2020. Now they are rushing to send planes and workers back to the skies as demand returns faster than expected.
America and Southwest have had to cancel their summer flights due to labor shortages, poor weather conditions and reduced network flexibility. Now they are recalling teams and resuming hires.
"It 's complicated " said Southwest general manager Gary Kelly, investors and the media.
He said the company is "intensely focused " on the ameimproving its operations and highlighted the time it will take to hire and train new workers as a key concern going forward.
"We are in the midst of an unprecedented recovery " said US Managing Director Doug Parker on a call to investors where the company also outlined its plans to pay approximately $ 15 billion in debt by the end of 2025.
US airlines have received $ 54 billion in COVID-19 relief for workers' wages during the crisis, otherwise Parker said restoring operations would have been even more difficult because so many workers would have left the industry.
"I can't imagine how hectic this would be not only for the airline industry, but for our economy as a whole ", he said.
Airlines are also grappling with a growing numbness of unruly passengers on increasingly crowded planes, including thousands who have refused to wear masks. learn more
Domestic pleasure travel almost returned to 2019 levels, and American said it expects a full recovery in domestic business travel next year. Southwest said it sees a 5 point improvement in business bookings each month.
American Airlines Flight 718, on America's first Boeing 737 MAX since regulators lifted a 20-month standstill in November, lands at LaGuardia Airport in New York, United States, December 29, 2020. Hfrance.fr/Eduardo Munoz / File Photo
As international travel continues to face entry bans, American said there was a "increaseQuick and spectacular bookings "whenever restrictions were lifted.
The revenues of American, the world's largest airline, have increased. jumped 361% to $ 7.48 billion, beating expectations as it carried 44 million passengers, five times more than a year ago.
Total operating revenue for Southwest, which is more focused on domestic travel, increased nearly 300% to $ 4 billion from the previous year, but declined by around 32% from 2019. learn more more
More flights and higher fuel prices will weigh on the airline 's costs in the third quarter, he said. he warned.
Southwest shares lost 3.5% at end of Septemberance and US stocks lost 1.5% following the US Airlines Index (. XAL) losses after two days of gains.
American, the greatest carrier in the world, made a profit of $ 19 million for the second quarter to June, including federal aid, against a loss of $ 2.07 billion a year earlier. learn 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 expected.
However, both airlines said that they were profitable in June even without thefederal government. funds, a first since the start of the pandemic in early 2020.
Alaska Air Group (ALK.N) reported Thursday a profit of $ 397 million, or $ 3.15 per share, in the second quarter, including aid.
Executives of the three airlines said they had not seen any impact from the variant Delta rapidly spreading coronavirus, echoing recent comments from rivals Delta Air Lines (DAL.N) and United Airlines (UAL.O) . learn more
LUnited CEO Scott Kirby, however, warned of "ups and downs " until more people are vaccinated against the virus. Report by Tracy Rucinski to Chicago and Sanjana Shivdas and Ankit Ajmera in Bengaluru; Edited by Nick Zieminski
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