Many of the cancellations were at United’s busy hub in Newark, New Jersey, and airline leaders initially blamed the Federal Aviation Administration for limiting flights. He trumpeted a two-notch upgrade from credit-rating agency Fitch, to B-plus - one step below the lowest investment-grade rating.Īmerican’s report came one day after a $1.08 billion profit despite nearly 4,000 canceled flights in the second half of June. Isom called it a “fantastic quarter” for Fort Worth, Texas-based American, and said the airline will focus on profitability and improving its balance sheet, which saw an expansion of debt during the pandemic. Revenue also beat Wall Street’s forecast of $13.74 billion. Analysts have been projecting $3.12 per share, according to a FactSet survey.įor the second quarter, excluding one-time items, American earned $1.92 per share, beating the analysts’ consensus of $1.59 per share.

The airline now expects to earn between $3 and $3.75 per share for the year, up from a previous forecast of $2.50 to $3.50. The airline credits technology that lets planners adjust flight schedules based on factors including weather forecasts at major airports, crew schedules and passenger numbers on each flight.Īmerican said third-quarter earnings would be 85 cents to 95 cents per share, in line with expectations. On the travel front, American has reduced its cancellations compared with a miserable summer last year.

Wages for pilots in particular have been rising rapidly at smaller airlines to counter labor shortages that left them unable to operate all their flights. Some industry officials believe that higher wages will help big carriers like American, United and Delta by driving up costs at their low-cost and discount competitors, whose business model is based on keeping costs as low as possible. Those and other tools are helpful, Raite said, “but the overall cost structures from a labor perspective are driving fares us.”

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