American firmly on path to report $1 billion cargo revenue in 2021
American Airlines, following Delta Airlines, is firmly on its way to cross $1 billion cargo revenue for 2021 on high yields and strong demand.
American more than doubled its cargo revenue to $973 million for the first nine months of 2021 from $484 million in the corresponding period of 2020.
Cargo ton miles increased 68 percent to 1.6 billion for the nine months ended September 30, 2021 as against 949 million during the same period of 2020.
For the three months ended September 30, 2021, American reported a cargo revenue of $332 million, an increase of 60 percent from $207 million for the quarter ended September 30, 2020. Sequentially, the airline had reported $315 million in Q1 and $326 million in Q2.
Cargo ton miles increased 51 percent to 510 million for the quarter ended September from 337 million in the previous year.
American also improved its performance on another key matrix - cargo yield per ton mile (cents) - 60.94 vs 51.05, an increase of 19 percent for the nine-month period and 5 percent increase to 65.02 from 61.61 for the September quarter.
Total Q3 revenue was $9 billion, up 20 percent sequentially from the second quarter of 2021, and third-quarter net profit was $169 million.
The airline ended the third quarter with approximately $18 billion of total available liquidity after prepayment of $950 million spare parts term loan during the quarter.
Meanwhile, United is expected to end 2021 with a cargo revenue of $2 billion on higher freight rates and strong demand.
Current Issue - October 2021
