A Southwest Airlines plane leaves from Midway Airport in Chicago, Illinois.
Scott Olson | Getty Images
American Airlines posted its fifth consecutive quarterly loss on Thursday, while Southwest Airlines made a profit, boosted by federal payroll aid.
Both companies have seen an improvement in travel bookings and plan to increase flight during the peak spring and summer months as more people are vaccinated against Covid-19 and tourist attractions reopen.
American Airlines recorded a net loss of $ 1.25 billion. The Texas-based carrier in Fort Worth, like its rivals Delta and United, has been forced to forgo much of the commercial and international revenue from its trips. U.S. revenue topped $ 4 billion, nearly 53 percent of the more than $ 8.5 billion it posted a year ago and below analysts ’expectations.
“The pandemic is far from over. We must continue to fight like never before and make sure that when the green flag falls, American is at the forefront,” U.S. CEO Doug Parker said in a note to employees. President Robert Isom. “But as our world advances daily in COVID-19 vaccination efforts, customers are traveling again and there is no doubt that the pace of recovery is accelerating.”
Adjusting for single items, Americans had a loss per share of $ 4.32, one cent more than analysts ’estimates.
Better demand is helping both carriers reduce money consumption. The U.S. recorded an average daily burn of $ 27 million in the first quarter, which fell to $ 4 million in March.
US stocks rose 2% ahead of the market.
Meanwhile, the Southwest said it expects to arrive by June “or better.”
The Dallas-based airline posted first-quarter net profit of $ 116 million, compared to a loss of $ 94 million a year ago. His first-quarter profit was the result of more than $ 1 billion in federal aid that offset his labor costs.
Southwest shares rose 1% in pre-market trading, after trading lower before reporting results.
Southwest said it would bolster its schedule and fly just a little less this June than the same month in 2019.
Southwest revenues fell to $ 2.05 billion, a drop of more than 51% from last year and slightly below the $ 2.07 billion expected by Wall Street analysts.