American Airlines Group Inc. (NASDAQ:AAL) is one of the leading U.S. airlines, operating in 240 destinations across America, Canada, Mexico, and the Caribbean. It was founded back in 1934 by the merger of about 85 small companies. American Airlines expanded aggressively between the 1970s and 1990s to strengthen its international presence, mainly by acquiring routes of other airlines.
The Texas-based airline recently announced better-than-expected financial results for the second quarter, helped by improved travel demand. American Airlines reported earnings of 3 cents per share, compared to a loss of $4.82 per share in the year-ago quarter. Excluding certain items, the company reported an adjusted loss of $1.69 per share, narrower than a loss of $2.03 per share estimated by analysts.
Revenue for the quarter skyrocketed 361 percent on a year-over-year basis to $7.48 billion, beating the consensus forecast of $7.32 billion. In addition, the load factor increased to 77 percent, compared to 42.3 percent in the comparable period of 2020.
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Speaking on the quarterly performance, American Airlines Group (AAL) CEO Doug Parker said, “We have taken a number of steps to solidify our business through our Green Flag Plan and it shows in our second-quarter results. We have reshaped our network, simplified our fleet and made our cost structure more efficient, all to create an airline that will outperform competitors and deliver for customers. The green flag has dropped and we are ready thanks to the tremendous efforts and dedication of the American Airlines team.”
Looking forward, American Airlines plans to operate over 150 new routes, starting this summer. Moreover, it intends to reduce its debt by nearly $15 billion through the next four years.
Disclosure: None. This article is originally published at Insider Monkey.