American Airlines Group (AAL) - Get American Airlines Group, Inc. Report posted a narrower-than-expected second quarter loss, but held off on predicting the carrier's return to profit later this year.
American said its adjusted loss for the three months ending in June was pegged at $1.69 per share, well inside the Street consensus forecast of a $1.99 loss and last year's tally of -$7.89 per share. Group revenues surged 87% from the first quarter, and 361% from last year, to $7.48 billion, American Airlines said, a figure that topped the Street consensus forecast of $7.34 billion.
Looking into the second half of the year, American Airlines said it sees third quarter capacity falling between 15% and 20% from 2019 levels, with revenues down 20% as well, but declined to predict a return to pre-tax profitability by the close of 2021.
“We have taken a number of steps to solidify our business through our Green Flag Plan and it shows in our second-quarter results,” said CEO Doug Parker. “We have reshaped our network, simplified our fleet and made our cost structure more efficient, all to create an airline that will outperform competitors and deliver for customers."
"The green flag has dropped and we are ready thanks to the tremendous efforts and dedication of the American Airlines team,” he added.
American Airlines shares were marked 2% lower in early trading immediately following the earnings release to change hands at $20.98 each.
Last week, American Airlines' rival Delta Air Lines DAL also posted a narrower-than-expected second quarter loss and said a pick up in business and leisure travel demand would lift the group into profitability over the second half of the year.