According to US Bureau of Transportation statistics, US scheduled airlines of passengers reported a net profit after tax of $1 billion in the second quarter of 2021. Significant improvement despite pre-tax operating loss of $3.6 billion. The second-quarter results represent the first profit since the fourth quarter of 2019, before the start of the COVID-19 pandemic.
In the second quarter of 2021, the American airlines reduced their first quarter losses by 124 %. The billion dollars in net profit after tax in the second quarter represents a difference of 5.2 billion dollars compared with the loss of 4.2 billion dollars in the first quarter.
The pre-tax operating loss for the second quarter was $3.6 billion. While still high, this represents a reduction of $9.1 billion on the first quarter loss of $12.7 billion.
This upturn is primarily domesticTravel restrictions continue to affect international demand. And this is likely to continue, with the US government as reluctant as ever to reopen its borders. The domestic business generated a pre-tax net profit of 1.8 billion in the 2nd quarter.
Visible improvement
If we refer to the results of the 24 major US airlinesThe figures are as follows:
- Profit/loss after tax
1.0 billion in profits in Q2 2021
This compares with a loss of $4.2 billion in the first quarter of 2021.
This compares with a loss of $11.0 billion in the 2nd quarter of 2020.
This compares with a profit of $4.8 billion in Q2 2019, before the pandemic.
- Operating profit/loss before tax
Losses of $3.6 billion in the 2nd quarter of 2021
This compares with a loss of $12.7 billion in the first quarter of 2021.
This compares with a loss of $16.3 billion in the 2nd quarter of 2020.
This compares with a profit of $6.9 billion in Q2 2019 before the pandemic.
- Total operating revenues for the 2nd quarter of 2021: $31.6 billion
- Share of total operating revenues in Q2 2021
Ticket sales: $20.7 billion, 65.5 1Q3T, compared with $4.0 billion in Q2 2020.
Baggage costs: $1.4 billion, or 4.4 1TP3Q, compared with $221.2 million in Q2 2020.
Reservation change fees: $137.2 million, or 0.4 1Q3, compared with $80.8 million in Q2 2020.
- Expenses
Fuel: $5.5 billion, 15.6 %, compared with $1.2 billion in Q2 2020.
- Workforce: $12.5 billion, or 35.7 1Q3T, compared with $11.3 billion in Q2 2020.
International business still at a low ebb
International traffic continues to be affected by US government restrictions. Losses still amounted to $773.8 million in the second quarter. This is an improvement on the first quarter, as for the first time since the pandemic, this loss has fallen below the billion-dollar mark.
- International net profit/loss after tax
Loss of $773.8 million in Q2 2021
This compares with a loss of $1.8 billion in the first quarter of 2021.
This compares with a loss of $2.1 billion in the 2nd quarter of 2020.
This compares with a profit of $1.2 billion in Q2 2019 before the pandemic.
- International operating profit/loss before tax
1.5 billion loss in Q2 2021
This compares with a loss of $3.0 billion in the first quarter of 2021.
This compares with a loss of $2.1 billion in the 2nd quarter of 2020.
This compares with a profit of $1.6 billion in Q2 2019 before the pandemic.
- International operating revenues in Q2 2021: $5.1 billion
- Share of total international operating revenues in Q2 2021
Ticket sales: $3.3 billion, 64.7 1TP3Q, compared with $340.0 million in Q2 2020.
Baggage costs: $250.0 million, or 4.9 1Q3, compared with $19.5 million in Q2 2020.
Reservation change fees: $16.3m, 0.3 1Q3Q, compared with $18m in Q2 2020.
