American Airlines is reporting a $1.34 billion profit for the second quarter, boosted by strong ticket sales and a huge drop in the price of jet fuel.
As a result, the airline has raised its profit expectations for the year.
Revenue rose 5 per cent to a quarterly record of $14.06 billion.
International travel in particular is picking up, and that is helping American Airlines as well as United Airlines and Delta Air Lines.
Thanks to lower fuel prices, the carrier’s spending at the pump plunged 32 per cent, saving about $1.3 billion compared with a year earlier.
American Airlines now expects to earn between $3 and $3.75 per share for the year.
Analysts have been projecting $3.12, according to a FactSet survey.
For the second quarter, excluding one-time items, American earned $1.92 per share, beating the analyst consensus of $1.59 per share.
Revenue also beat Wall Street’s forecast of $13.74 billion.
Chief executive Robert Isom called it a “fantastic quarter” for the 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.
