American Airlines and Southwest Airlines both post second-quarter profits thanks to generous federal pandemic relief that covers most of their labor costs.
American Airlines passenger jets prepare for departure, Wednesday, July 21, 2021, near a terminal at Boston Logan International Airport, in Boston. American Airlines Group Inc. on Thursday, July 22 reported second-quarter net income of $19 million, after reporting a loss in the same period a year earlier.
Southwest said it made money in June even without the government aid and hopes to be profitable by any measure in the third and fourth quarters if the pandemic doesn’t get worse. As passengers stream back, flight delays have soared. The problems have been greatest at Southwest and American, which have struggled with hundreds of delayed flights a day.
Southwest is recalling some workers from leaves earlier than scheduled. American recently announced plans to bulk up staffing by recalling 3,300 flight attendants from leave later this year and hiring 800 more by next spring. It plans to hire 350 pilots this year and more than 1,000 next year.
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