American Airlines posted a Q2 net income of $476mn vs $19mn one year prior. It also achieved a record high Q2 revenue of $13.4bn, improving 12.2% from $12bn in 2019 despite flying at 8.5% less capacity. Notably, the airline ended the quarter with $15.6 total available liquidity and is on track to repay $15bn of its total debt by the end of 2025. Domestic and International travel both remain strong, with revenue passenger miles increasing 13.2% and 53.5% from Q2 2021, to $39bn and $18bn respectively. The company expects to continue on its upward trajectory, following the strong pandemic recovery and lifting of COVID-19 testing measures for inbound travel into the US. Therefore, American airlines anticipates that it will be profitable in Q3, raking in total revenues that are 10 to 12% higher vs $11.9bn in Q3 2019 on 8 to 10% lower capacity.

The airline’s 3.75% 2025s gained 1.75 points and is currently trading at 87.16 cents to the dollar, yielding 9.44%.

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