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business Friday 22 april 2022
U.S. airlines say they’ve reached a turning point in recovery

By DAVID KOENIG bigger first-quarter loss than
AP Airlines Writer a year ago, when it lost
DALLAS (AP) — U.S. airlines $1.25 billion. The Fort Worth,
say they have hit a turn- Texas-based airline said
ing point: After a lousy first that excluding special items
quarter, they expect to be it lost $2.32 a share, slightly
profitable as Americans re- better than the average
turn to travel in the biggest forecast of an adjusted loss
numbers since the start of of $2.43 per share, accord-
the pandemic. ing to a Zacks Investment
American Airlines is the lat- Research survey. Revenue
est carrier to give a rosy rose to $8.9 billion.
outlook for the rest of 2022. Alaska Air Group, the par-
American said Thursday ent of Alaska Airlines, said
that although it lost $1.64 Thursday that it lost $143
billion in the first quarter, million in the first quarter,
sales hit a record in March, compared with a $131 mil-
and the company expects lion loss a year earlier. Rev-
to earn a profit in the sec- enue more than doubled
ond quarter. to $1.68 billion but was
“Demand is as strong as we down 10% from the same
have ever seen it,” Ameri- quarter in 2019.
can CEO Robert Isom told The Seattle-based carrier
analysts. American Airlines passenger jets prepare for departure, Wednesday, July 21, 2021, near a terminal forecast that second-quar-
Shares of American and at Boston Logan International Airport, in Boston. Associated Press ter revenue will be 5% to
other airlines rose in morn- 8% higher than in the same
ing trading. won’t be discouraged by their offices.” next five-plus years,” United quarter of 2019.
American’s upbeat view another, smaller uptick Along with higher revenue, CEO Scott Kirby told ana- After the market closed
echoed similar comments in coronavirus cases and however, airlines face high- lysts Thursday. on Thursday, United Air-
from Delta Air Lines and higher airfares. er costs for fuel and labor. American said it has hired lines Holdings reported
United Airlines, which both The recovery is being pow- American’s fuel bill more 1,100 pilots since the start Wednesday a $1.38 billion
predicted in recent days ered by leisure travelers, than doubled from a year of last year. Many of those loss for the first quarter but
that they will earn full-year but the airlines say they are earlier, and payroll costs came from smaller, region- said it expects to return to
profits despite big losses in seeing more business trav- rose more than 15%. al airlines, leaving those profitability in the April-to-
the first quarter. elers. American said overall Airlines are also facing a carriers with shortages. As a June quarter. Revenue of
Air travel was subdued in business travel is 80% of pre- limited supply of pilots, result, American will trim its $7.67 billion was up from
January and February by pandemic levels, dragged which could limit their abil- American Eagle schedule a year ago but down 21%
the omicron variant that down by corporate travel, ity to operate as many in the second quarter. from early 2019, as the air-
caused an increase in which is only 50% of 2019 flights as they would like. American’s passenger- line continues to run fewer
COVID-19 cases among levels. Isom said, however, “The pilot shortage for the carrying capacity will also flights than before the pan-
both travelers and airline that corporate bookings industry is real, and most be lower than planned demic.
employees. But travelers are the highest they have airlines are simply not going because deliveries of new In morning trading, United
came back in March, and been since the start of the to be able to realize their Boeing 787 jets has been shares gained 12%, Ameri-
airline executives believe pandemic, “and we ex- capacity plans because delayed by production can rose 6%, Delta Air Lines
that Americans are eager pect that to continue as there simply aren’t enough problems at Boeing facto- rose 5% and Alaska gained
to travel this summer and more companies reopen pilots, at least not for the ries. American reported a 2%.q

Amazon extends Prime perks to

merchant sites

By HALELUYA HADERO or use its delivery services. count. Merchants who use
Associated Press Amazon.com Inc. said the the service will pay various
Amazon is extending the service will only be avail- fees, which the retailer says
benefits of a Prime subscrip- able for U.S. customers. are calculated depending
tion to online stores beyond Launched in 2005, Prime on what sellers use. “With
its own site, a move geared has more than 200 mil- no fixed subscription fee
toward boosting revenue lion members worldwide or long-term contract re- by making “knock-offs,” or tics arm aims to further
from merchant fees and who pay $139 a year, or quired, merchants can ex- very similar products, and compete with major carri-
expanding its logistics foot- $14.99 a month, for faster pand selection or cancel boosting their presence on ers like UPS, FedEx and the
print. shipping and other perks, at any time,” it said. the site. U.S. Postal Service, though
The company said Thurs- such as free delivery and Bob O’Donnell, the chief “If I’m a merchant, and I some are speculating
day the new service it calls returns.The company said analyst at TECHnalysis Re- really don’t want to deal Thursday’s announcement
“Buy with Prime,” will initially Prime members using “Buy search, says the expansion with the hassle of shipping could have also been
be available by invitation with Prime” would be able will open more doors for and logistics and returns geared toward blunting
for merchants who ship to see the Prime logo on businesses to use Amazon and all that kind of stuff, this the momentum of the Ca-
their products using Ama- eligible products on a mer- services without selling on becomes a very attractive nadian e-commerce com-
zon’s warehouse and de- chant’s site and make pur- the retailer’s third-party option without having to pany Shopify, which makes
livery services. Then, it will chases using the payment marketplace, which has actually sell on Amazon,” software that allows busi-
be rolled out for merchants and shipping information long faced accusations of O’Donnell said. nesses to set up their online
who don’t sell on Amazon stored in their Amazon ac- undercutting merchants Amazon’s growing logis- stores.q