American Airlines Boeing 787-9 Dreamliner takes off from Los Angeles International Airport in Los Angeles, California on November 11, 2020.
AaronP | Farmer Griffin | GC Images | Getty Images
American Airlines on Thursday forecast second-quarter pre-tax profit as strong bookings help offset rising fuel costs.
American, the country’s largest airline, said March was the first month since the pandemic began that its revenue topped 2019 levels and bookings continued to rise. It forecast second-quarter revenue up to 8% higher than the same period three years ago.
It is expected to fly up to 94% of its 2019 schedule, more than competitors Delta Air Lines and United Airlines, which have been more conservative about restoring capacity during the pandemic.
American is the third major airline to report quarterly results. United said on Wednesday it expects to return to profitability this year thanks to a surge in bookings and fares, echoing similar comments from Delta a week earlier. United’s forecast sent airline stocks higher in after-hours trading on Wednesday.
American shares surged after the results were announced, rising more than 10% in premarket trading on Thursday, versus a roughly 5% surge boosted by United’s results. United rose more than 8%.
Here’s how American performed in the first quarter versus Wall Street expectations, based on average estimates compiled by Refinitiv:
- Adjusted loss per share: $2.32 vs. $2.40 expected
- Total sales: $8.9 billion versus $8.826 billion expected
American posted a net loss of $1.6 billion in the first quarter on revenue of nearly $8.9 billion, more than double the revenue of $4 billion a year ago and beating analyst estimates. Revenue fell 16% compared to the same quarter of 2019.
The Fort Worth, Texas-based airline said it paid $2.80 a gallon for fuel in the first quarter, up 65% year over year. American stopped hedging fuel after oil prices plummeted in 2014.
US executives will host a conference call with analysts and the media at 8:30 am ET to discuss the results.