American, Southwest post quarterly profits, boosted by travel surge, federal aid

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An American Airlines Boeing 777-300ER plane takes off from Sydney Airport in Sydney, Australia, October 28, 2020.
Loren Elliott | Reuters

American Airlines on Thursday posted a profit for the second quarter, getting a lift from federal aid and a surge in travel demand.

The Fort Worth-based carrier reported net income of $19 million, snapping five consecutive quarters of losses, thanks in part to more than $1 billion in federal payroll support. Revenue for the three months ended June 30 came in at $7.48 billion, up from just $1.6 billion a year earlier and ahead of Wall Street analysts’ forecasts, as customers returned to the skies in droves.

Adjusting for one-time items, American had a loss of $1.1 billion or $1.69 as share.

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