American Airlines' revenues rose to U.S. dollars 12 billion in the second quarter. It marked a rise of 2.7 percent. Strong travel demand, high load factors and a robust loyalty program are the main factors that gave American Airlines a healthy second-quarter result.
The net profit was U.S. dollars 662 million. In the second quarter, total operating cost per available seat mile (CASM) of 14.94 cents was up 2.4 per cent from the same 2018 period.
In a statement announcing its results, the airline estimated the 737 MAX cancellations in the second quarter had slashed pre-tax income by approximately U.S. dollars 175 million. The United States Federal Aviation Administration (FAA) grounded all US-registered 737 MAX aircraft on March 13, joining other regulators around the world.
American Airlines said that the passenger load factors in the second quarter were 86.6 percent, while passenger revenue per available seat mile (PRASM) grew 4 percent to a record 15.22 cents.
Cargo revenue decreased 15.4 percent to U.S. dollars 221 million due primarily to a 16.2 percent decrease in cargo ton-miles, the airline said in its statement.
Doug Parker, American Airlines chief executive said that the challenges they face this summer are near-term issues that absolutely will be addressed with time.
Further, it expected the 737 MAX issue would negatively impact its full year 2019 pre-tax earnings by about U.S. dollars 400 million. American Airlines has cancelled 737 MAX flights from its schedule until November 2.
Tags: American Airlines
