Major US airlines all reported third quarter earnings in the past several weeks, and overall the news reveals results trending in a positive direction. However, while carriers have all trimmed losses or even posted modest profits, the industry still lags behind its record-setting benchmark year of 2019.
Alaska Airlines
Alaska Airlines reported net income for the third quarter of 2021 of $194 million compared to a net loss of $431 million in the third quarter of 2020. The results translate to a net income of $1.53 per share, beating analysts’ consensus estimate for the quarter of $1.30 per share.
“We are thrilled to return to profitability this quarter, leading the industry with a 12 percent pretax profit margin,” said CEO Ben Minicucci on the airline’s third quarter call. “We’re all feeling the momentum and look forward to building on our strong foundation for growth in 2022 and beyond.”
American Airlines
Speaking on American’s third quarter earnings call, the airline’s president Robert Isom said the carrier expects a full rebound of business travel revenue to 2019 levels on a monthly basis by the end of 2022. Isom said in his regular conversations with top corporate customers, he found almost all have resumed domestic US business travel, to some extent.
As companies return to the office and lift travel restrictions, the carrier sees continued growth in corporate travel, with industrials, health care and professional services continuing to lead the recovery.
Long-haul international travel, particularly long-haul business travel, while the slowest to return, is starting to come back, according to Isom. Right now, almost two-thirds of corporate customers are traveling internationally, at least for essential business, and the airline expects international travel to improve significantly with the easing of cross-border requirements.
The airline posted a third quarter net loss of $642 million, excluding net special items, on $9 billion in…