by Donald Wood
Last updated: 2:41 PM ET, Thu July 21, 2022
Carriers and airports may be facing more flight delays and cancellations, but American Airlines reported its first quarterly profit without government aid since the coronavirus pandemic started.
According to Reuters.com, officials from American announced during a second-quarter 2022 conference call that strong summer travel demand helped generate the highest quarterly revenue in its history.
With expectations that non-fuel costs could climb as much as 14 percent in the third quarter, the airline is not as optimistic as it operates fewer flights than previously planned to get operations back on track.
"We are very pleased to report a quarterly profit, excluding net special items, for the first time since the start of the pandemic, driven by the strong demand environment and the hard work of our team," American CEO Robert Isom said.
"The American Airlines team has stepped up to meet the surge in demand for air travel while running a reliable operation in very challenging conditions," Isom continued. "We are encouraged by the trends we're seeing across the business, and we remain well-positioned for the continued recovery."
American also reported capacity for the third quarter would be down between eight-10 percent from pre-pandemic totals. Initial expectations from the airline forecasted a decline of six-eight percent.
Delta Air Lines and United Airlines also announced plans to keep capacity below 2019 levels.
While bottled-up travel demand has helped carriers report profitable quarters, staffing gaps and aircraft shortages have made it hard for airlines to satisfy the high number of travelers taking to the skies.
As for fuel costs, American expects fuel costs in the current quarter will drop by around seven percent, while revenue is expected to climb by between 10-12 percent.
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