American Airlines release second-quarter 2021 report; will improve balance sheet

 American Airlines release second-quarter 2021 report; will improve balance sheet

American Airlines Group Inc.has published its second-quarter 2021 financial results. Find out the details below: 

• Second-quarter net profit of $19 million, or $0.03 per diluted share. Excluding net special items, second-quarter net loss of $1.1 billion, or ($1.69) per share.
• Second-quarter revenue of $7.5 billion, up 87 percent 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.

In March 2021, CEO Doug Parker revealed the company’s 2021 Green Flag Plan. The aims is to focus on doubling double down operational excellence, reconnect with customers, build on team momentum and passionately pursue efficiencies.

“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 plan has dropped and we are ready thanks to the tremendous efforts and dedication of the American Airlines team.”

American is committed to improving its balance sheet. The company now expects to reduce its debt by more than $15 billion by the end of 2025 versus its previous guidance of $8 billion to $10 billion.

 American Airlines aim to reduce GHG by 2035 with a science based target

American Airlines (American) announced its commitment towards setting a science-based target for reducing greenhouse gas (GHG) emissions. This move will sharpen the company’s strategy for reaching net-zero emissions by 2050, align its path with the global imperative of limiting temperature rise to well below 2°C, and bring additional accountability to its approach.

American is said to be the first airline in North America to begin the validation process with the Science Based Targets initiative (SBTi), a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). In doing so, American is committing to develop a 2035 emissions reduction target that will be reviewed by the SBTi to confirm its consistency with the latest climate science.

“We are building American Airlines to thrive forever, which is why we set an ambitious goal to reach net-zero emissions by 2050,” said Doug Parker, chairman and CEO of American Airlines. “Now, we’re committing to set a science-based target for 2035 because the seriousness of the climate challenge demands it. We’ve already laid a strong foundation by prioritizing near-term solutions to reduce our emissions, like renewing our fleet with more fuel-efficient aircraft. Looking forward, we believe we have an obligation to our customers, team members, shareholders and the communities we serve to focus and accelerate our transition to operating a low-carbon airline. We view the work ahead as an opportunity to support the change necessary to protect our planet for future generations, and we welcome the accountability that comes with taking this step.”

American Airlines distributes 1.5 million Covid-19 vaccines globally

As part of the White House initiative to share at least 80 million US vaccine doses globally this summer, American Airlines moved 1.5 million Covid-19 vaccine doses from Chicago O’Hare International Airport (ORD) to La Aurora International Airport (GUA) in Guatemala City on a Boeing 777-200 aircraft. The shipment departed ORD this morning.

In close consultation with the White House Covid-19 task force, American’s cargo team worked with pharmaceutical partners and trucking logistics specialists to move the shipment of vaccinations from a distribution site in Kentucky to American’s cargo terminal at ORD. The shipments were loaded onto the 777-200 and flew on a special donated cargo-only nonstop flight to GUA.