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American Airlines boom on holidays after Delta variant hit

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New York:

American Airlines said on Thursday that the latest surge in Covid-19 hit profitability in the latest quarter, but was sharper in the upcoming holiday season.

The big US carrier enjoyed a profitable July before the spread of the Delta version pushed the company into the red in both August and September, US officials said in a letter to employees.

The company reported a profit of $169 million in the third quarter, but the bottom line would have suffered without an infusion of US funds authorized by Congress for carriers to preserve airline jobs.

Revenue was $9 billion, more than double the year-ago level, but down about 25 percent over the same period of 2019.

“The American Airlines team continues to demonstrate their resilience and ability to execute, which have helped us deliver our best quarter ever since the pandemic began,” said Chief Executive Doug Parker.

“While the rise of the Covid-19 delta version delayed some of our revenue recovery, it did not stop our progress.”

American said it is gearing up for “strong” demand during the holiday season, with fourth-quarter capacity down between 11 and 13 percent compared to the 2019 quarter.

That’s a higher level of utilization than rivals United Airlines and Delta Air Lines, which said they expect a 23 percent and 20 percent reduction in capacity compared to the 2019 period.

American Airlines shares rose 1.0 percent to $19.72 in pre-market trading.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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