Sumary of American, Southwest post quarterly profits, boosted by travel surge, federal aid:
- An American Airlines Boeing 777-300ER plane takes off from Sydney Airport in Sydney, Australia, October 28, 2020.Loren Elliott | ReutersAmerican Airlines and Southwest Airlines posted second-quarter profits Thursday, getting a lift from federal aid and a surge in travel demand.
- 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.
- Adjusting for one-time items, American had a loss of $1.1 billion or $1.69 as share.
- American said it plans to pay down $15 billion in debt by 2025. The most indebted of the U.S. airlines, American had a total debt of about $48 billion as of the end of the first quarter, according to FactSet.
- Earlier Thursday, Southwest reported a jump in revenue in the quarter as travelers returned.
- 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.