The stalwarts of American air travel have both posted strong numbers upon the release of earnings for both United (UAL, $37,44) and American Airlines (AAL, $14,08). However, both have decided to be extra cautious about their plans moving forward due to disruptions.
American Airlines posted its first quarterly profit since the Covid pandemic started without government aid but joined competitors in scaling back growth plans after a host of disruptions this year. American posted a second-quarter profit of $476 million, up from $19 million a year earlier, though the airline was still benefiting from federal coronavirus payroll support last year. Second-quarter revenue of $13.4 billion was up 12% from before the pandemic. United reported its first quarterly profit, $329 million since the Covid-19 pandemic began without the help of federal payroll aid, which expired almost a year ago. Despite this, however, it said it will scale back its growth plans through 2023. Unit revenues in the second quarter surged 24% over 2019 thanks to strong travel demand, even at sky-high fares, while unit costs, excluding fuel, rose 17% over the April-June period of three years ago.
American shares fell 7.4% on Thursday while United lost 10.2%. “As we look to the rest of the year, we have taken proactive steps to build an additional buffer into our schedule and will continue to limit capacity to the resources we have and the operating conditions we face,” American Airlines CEO Robert Isom stated to a note to staff.