US airlines profits soar as summer travelers hit the skies |

DALLAS — The three biggest U.S. airlines enjoyed a boffo summer, reaping a combined profit of more than $2 billion as Americans jammed on to planes despite fares that were sharply higher than a year ago.

Some might ask: What pandemic?

American Airlines was the latest to report outsized results. The Texas-based carrier said Oct. 20 that it earned $483 million on record-breaking revenue that more than offset higher fuel costs in the third quarter.

American also predicted that profit will continue to exceed Wall Street expectations during the holiday-packed remainder of 2022.

The results weren’t quite as grand as figures from its more prosperous rivals. United Airlines reported a $942 million profit on Tuesday, and Delta Air Lines posted third-quarter earnings of $695 million last week.

Also Thursday, the parent of Alaska Airlines reported a $40 million third-quarter profit on record sales of $2.8 billion.

Southwest Airlines and JetBlue Airways report their earnings next week. 

Clearly, many Americans are eager to travel after most were grounded during the early part of the pandemic. Executives at all three biggest U.S. airlines said they see no indication that consumer concerns about inflation and the economy are hurting ticket sales.

“American’s third-quarter results, including our record revenue performance, are significant considering the macroeconomic uncertainty facing so many people,” CEO Robert Isom said on a call with analysts. “Demand remains strong.”

American predicted that fourth-quarter profit will be between 50 cents and 70 cents per share, which would beat Wall Street’s forecast of 19 cents per share.

U.S. air travel has roared back from pandemic lows in early 2020. Last Sunday, the Transportation Security Administration screened nearly 2.5 million travelers on a single day, the busiest day at the nation’s airports since February 2020.

Travel is booming despite a 43 percent leap in airfares in the past year, according to government figures.

One reason ticket prices are high is that the number of flights has not returned to pre-pandemic levels, leaving consumers vying for fewer seats. American, for example, flew nearly 10 percent less in the third quarter than in the same period of 2019.

American said it plans to run at 95 percent to 100 percent of 2019 levels next year. That is in line with Delta, which expects to restore its full schedule by next summer. United recently announced it will expand European flying, also next summer.

Isom said American could add more flights next year but will take a cautious approach. American, Delta and others canceled flights earlier this year when they didn’t have enough staff, particularly pilots.

“We are going to make sure that we don’t outpace what we have, either in terms of aircraft deliveries if that’s the constraint, or if it’s pilots at a regional level or our ability to train pilots” at American, he said.

Related Posts

Previous post Should You Transfer Ultimate Rewards Points or Book Through Chase?
Next post Using Big Data To Help Plan Your Next Vacation