Daily Management Review

American and Southwest Airlines report profits for first time since pandemic starts


US civil aviation market leaders, American Airlines and Southwest Airlines, presented their financial reports for the second quarter of this year. For the first time since the COVID-19 pandemic they ended the quarter with a profit.

A rebound in tourist traffic in the USA helped American Airlines make a $19 million profit, tiny compared to the multibillion losses the company had suffered throughout the year. However, this was made possible by more than $1 billion in financial aid from the US government. Excluding these payments, the quarter was once again a loss for American, by $1.1 billion.

The carrier's revenue was up markedly from a year ago, from $1.6bn to $7.48bn. However, compared to pre-2019, the current revenue is still far from optimal. Two years ago, the company generated revenue of $12bn.

Southwest Airlines, the third-largest US carrier, grew revenue by almost 300% year-on-year to $4bn, still 32% less than the $5.9bn it generated in the same period in 2019. The airline posted a second-quarter net profit of $348m, compared with a loss of $915m a year earlier.

source: bloomberg.com