American Airlines Now Sees Q3 Revenue Decline About 24% To 28% From Q3 Of FY19 - Quick Facts

(RTTNews) - Providing an update on recent performance, American Airlines said Thursday that July 2021 financial results were better than previously estimated due primarily to strong leisure passenger traffic and improving passenger yields. The company added that it was profitable excluding net special items in July.

However, the airline experienced softness in August in close-in bookings and an increase in close-in cancellations, which it attributes to the rise in COVID-19 cases associated with the delta variant and related headlines.

The August revenues were weaker than the Company had forecasted when it provided its guidance on July 22. This weakness has continued into September and has resulted in a slowing of net bookings growth for close-in travel.

American now expects its third-quarter 2021 total revenue to decline approximately 24 to 28 percent, compared to the previous guidance for a decline approximately 20 percent. The revenue decline is compared to the third quarter of 2019.

Despite these changes, the Company continues to expect a sequential improvement in both revenue and pre-tax loss before special items from the second quarter 2021. It also expects that its reported third quarter financial results will be the best quarter as measured by revenue and pre-tax loss before special items, since the pandemic began.