An American Airlines Boeing 777-300ER plane takes off from Sydney Airport in Sydney, Australia, October 28, 2020.
Loren Elliott | Reuters
Fort Worth, Texas-based American reported net income of $19 million, snapping five consecutive quarters of losses, thanks in part to more than $1 billion in federal payroll support. Revenue for the three months ended June 30 came in at $7.48 billion, up from just $1.6 billion a year earlier and ahead of Wall Street analysts’ forecasts, as customers returned to the skies in droves.
Adjusting for one-time items, American had a loss of $1.1 billion or $1.69 as share.
Earlier Thursday, Southwest also reported a jump in revenue in the quarter as travelers returned. The Dallas-based airline’s sales rose nearly 300% from a year ago to $4 billion. That was still down 32% from $5.9 billion during the same time in 2019. Net income for the second quarter totaled $348 million, compared with a $915 million loss a year earlier.
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