American Airlines -- Revenue Beats Pre-Covid Era Despite Flying 10% Less Capacity -- Remember Those Huge Summer Airline Fares? This Isn't Rocket Science -- October 20, 2022

Remember, the third quarter was the second consecutive quarter of negative GDP, which for some folks (see wiki) is the definition of a recession.

So, during the recession:

American Airlines  earned 69 cents a share on net income of $483 million, compared with a loss of 25 cents a share on net income of $169 million in the prior-year's quarter. 

Excluding items, the carrier earned 69 cents a share on net income of $478 million. 

Analysts surveyed by FactSet were looking for earnings of 54 cents a share on net income of $403 million. 

American Airlines reported third-quarter revenue of $13.462 billion, compared with $8.969 billion in the prior year's quarter. Analysts surveyed by FactSet were looking for revenue of $13.365 billion. 

The company said that third-quarter revenue was up 13% on the same period in 2019, before the pandemic hit, despite American Airlines flying 9.6% less capacity. 

The company's third-quarter load factor was 85.3%, compared with the FactSet consensus of 84.9%. 

American Airlines expects fourth-quarter revenue up 11% to 13% compared to the fourth quarter of 2019 on 5% to 7% lower capacity. Excluding items, the company expects fourth-quarter earnings of 50 cents to 70 cents a share, compared with the FactSet consensus of 19 cents a share.

I've been saying this for quite some time now -- agreeing with Robert Reich -- but I said it first -- LOL -- US corporations were using mainstream media's "inflation" scares as cover for huge price increases; consumers buying into that scare; and, sending profits surging for US corporations. 

The only real inflation, to the extent mainstream media was scaring us, was based on a) used cars; and, b) rent. To repeat:

American Airlines said that third-quarter revenue was up 13% on the same period in 2019, before the pandemic hit, despite American Airlines flying 9.6% less capacity.

What a great country.

Remember those huge summer airline fares? I certainly do. I refused to fly to Oregon during the summer to see the grandsons simply because fares were so high. I drove instead. LOL.

DWF to PDX during the summer, trending toward $800 round trip.

Now? My ticket cost $365 late October.