Locally Based Airlines Report Second Quarter Profits as Travel Demand Increases

(Photo: SWA)

DALLAS (WBAP/KLIF) – Two locally based airlines are reporting second quarter profits for the first time in a while as the industry looks to bounce back from the COVID-19 pandemic.

Southwest Airlines Chairman of the Board and Chief Executive Officer, Gary Kelly said that the second quarter 2021 marked an important milestone in the pandemic recovery as leisure travel demand surged.

(Photo: AA)

“We generated net income in June 2021, representing our first monthly profit without taking into account the benefit of temporary salaries and wages cost relief provided by PSP proceeds, since the negative effects of the pandemic began in March 2020,” said Kelly. “While the rapid ramp up in June travel demand provided stability to our financial position, it has impacted our operations following a prolonged period of depressed demand due to the pandemic. Therefore, we are intensely focused on improving our operations as we restore our network to meet demand. I am beyond thankful for our People, who are heroes, and whose resiliency, hard work, and unwavering resolve is on display every day. I am pleased for them that we were able to accrue $85 million of profit-sharing for our Employees in second quarter 2021, for a total of $109 million in first half 2021.”

According to Kelly, compared to the last four quarters, second quarter 2021 operating revenues for Southwest significantly improved, decreasing 32.2 percent compared with second quarter 2019. June 2021 operating revenues decreased 20.7 percent, compared with June 2019.

“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 Airlines Group Inc. reported its second-quarter 2021 financial results on Thursday, including a net profit of $19 million, which includes Federal relief grants. Additionally, the airline reported a second-quarter revenue of $7.5 billion, up 87% sequentially from the first quarter of 2021.

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