An American Airlines Boeing 787-9 Dreamliner is about to land at Miami International Airport on December 10, 2021 in Miami, Florida.
American Airlines reported a profit of $483 million in the third quarter and joined rivals in forecasting resilient travel demand, as the airline industry continues to shrug off concerns about an economic slowdown.
US revenue rose to a record $13.46 billion in the three months ended September 30, up 13% compared to 2019. Although it flew almost 10% less, the passenger brand is still traveling despite the fares. Its quarterly sales were slightly ahead of analysts’ estimates.
“Demand remains strong, and it’s clear that customers continue to value air travel and the ability to reconnect after the outbreak,” CEO Robert Isom said in a staff memo Thursday after the company released the results.
Isom said the company’s revenue would likely return to 95% to 100% of its 2019 capacity next year, an expansion he said would be limited by slow aircraft deliveries and a shortage of flights by regional airlines.
The U.S. said it expects the force to continue through the end of the holiday season. The fourth quarter expects total revenue to rise 13% from three years ago, before the spread of Covid. It predicted that its earnings during the quarter would decline by 5% to 7% from 2019 and forecast adjusted earnings per share between 50 cents and 70 cents.
The company’s shares were down about 2% in morning trading.
Here’s how the U.S. did in the third quarter, compared to Wall Street expectations according to Refinitiv’s consensus estimate:
The U.S. raised its third-quarter earnings forecast last week, sending stocks higher.
Rivals United Airlines and Delta Air Lines are also forecast to be profitable at the end of the year thanks to bookings and fares.
The industry has seen strong travel demand, well into the autumn peak, as customers continue to fly and, in many cases, pay more than they did in 2019. All three major airlines estimated unit revenue strong compared to three years ago, before the disaster, a change that helps them more than the increase in costs.
The U.S. gas bill nearly doubled from a year ago to more than $3.8 billion, while labor costs rose 12% to $3.4 billion.
The Fort Worth, Texas-based airline said its cost per available seat mile is likely to rise 8% to 10% in the final three months of the year in the same quarter of 2019 and, for the full year, to 13 % more than three years ago.
