American Airlines reports second-quarter 2021 financial results

American Airlines Group Inc. [AAL] today reported its second-quarter 2021 financial results, including:

•Second-quarter net profit of $19 million, or $0.03 per diluted share. Excluding net special items 1, second-quarter net loss of $1.1 billion, or ($1.69) per share.

•Second-quarter revenue of $7.5 billion, up 87% sequentially from the first quarter of 2021.

•Ended the second quarter with approximately $21.3 billion of total available liquidity, a record for the Company.

•Accelerated the deleveraging process with prepayment of $950 million spare parts term loan.

•Company plans to pay down approximately $15 billion of debt by the end of 2025.

“We have taken a number of steps to solidify our business through our Green Flag Plan and it shows in our second-quarter results,” said American’s Chairman and CEO Doug Parker. “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.”

American is committed to strengthening its business and returning to profitability by focusing on its three strategic objectives: Create a world-class customer experience, make culture a competitive advantage and build American to thrive forever.

To create a world-class customer experience, American:

•Plans to operate more than 150 new routes this summer, including several new destinations and greater connectivity in Miami, Austin, Texas, and Orlando, Florida. During the summer season, American expects to fly more than 90% of its domestic seat capacity and 80% of its international seat capacity, in each case as compared to 2019.

•Scheduled 10 new domestic and four new international destinations from Austin for this fall as a result of increased customer demand. American and its partners will offer the most options in Austin this fall, with nearly 100 peak day departures.

•Transitioned regional flight operations at Reagan National Airport from Gate 35X to a new 14-gate concourse, providing customers with a range of new amenities, including an all dual-class operation.

•Continued to launch COVID-19 testing tools to make flying safer and easier, including self-administered and packable home tests.

•Worked with VeriFLY to expand the app's capabilities to include COVID-19 vaccination verification, which is now available in 11 countries, with more planned in the third quarter. Customer usage of VeriFLY has quadrupled since the first quarter and the app can be used at expedited check-in lanes at most U.S. hub airports.

•Introduced Five Star Essentials at Charlotte Douglas International Airport, Dallas Fort Worth International Airport and Miami International Airport. The service provides an extra set of hands during the customer journey from check-in to the gate.

•Continued to welcome back customers to Admirals Club lounges across the system with new signature menu offerings and the expansion of innovative touchless technology. All Admirals Club lounges will reopen by the end of August and American’s Flagship Lounge locations will start reopening this fall.

•Reintroduced full beverage service in all domestic premium cabins and resumed offering canned drinks, juice and water in the main cabin.

•Revamped its premium cabin onboard amenity kits in partnership with Shinola and D.S. & Durga, brands celebrated for thoughtful design and creativity.

•Refreshed its inflight entertainment offerings by adding new lifestyle entertainment choices with free access to Rosetta Stone and Skillshare, making it the first U.S. airline to tap into online/remote learning from 35,000 feet.