American Airlines Group recorded record revenue in the second quarter of 2022 and said it sees potential for its further growth due to the expected increase in demand for business and leisure travel.
In April-June, the airline’s revenue almost doubled to $13.4 billion from $7.5 billion a year earlier. The indicator was 12.2% higher than the level of the second quarter of 2019, despite the fact that the carrying capacity was 8.5% lower than three years ago. Analysts polled by FactSet had, on average, expected the company’s quarterly revenue to be $13.33 billion.
American Airlines’ net income for the quarter increased to $476 million, or $0.68 per share, from $19 million, or $0.03 per share, in the same period a year earlier.
Earnings before one-off factors amounted to $0.76 per share against a loss of $1.69 per share a year earlier, but turned out to be worse than the consensus forecast of analysts, which was $0.77 per share.
According to the American Airlines forecast, in July-September its revenue will be 10-12% higher than in pre-Covid 2019, and its carrying capacity will be 8-10% lower.
„Based on trends in demand and current fuel prices, the companies expect to lock in profits in the third quarter,” the press release said.
Analysts on average expect American Airlines to post earnings of $0.48 per share in the third quarter on revenue of $13.38 billion.
Since the beginning of 2022, the company’s capitalization has decreased by 15%.