American Airlines’ Amazing Earnings

Good morning from Skift. It’s Friday, July 22 in New York City. Here’s what you need to know about the business of travel today.

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Episode Notes

American Airlines has faced a bevy of challenges recently, including a pilot shortage that has forced the carrier to temporarily ground 100 jets at its regional affiliates. But American still managed to generate $13.4 billion of revenue in the second quarter — a record, reports Edward Russell, editor of Airline Weekly, a Skift brand.

CEO Robert Isom said during the airline’s second quarter earnings call on Thursday that this summer has been one of the company’s busiest ever. American’s record-setting quarter was sparked by revenue from business travelers, which has fully recovered to pre-pandemic levels. In addition, the company has seen leisure demand surpass 2019 metrics.

American reported a $476 million net profit for the second quarter despite having to deal with severe weather-related delays and cancellations throughout June. Isom also acknowledged air traffic control issues in some busy markets have complicated flying.

Next, countries worldwide are in a hurry to fill vacant travel and tourism positions, so what avenues are they looking at? Corporate Travel Editor Matthew Parsons profiles startups helping governments fill those openings in this week’s Future of Work briefing.

Global payroll and onboarding startful Deel claims it pioneered the model, Parsons writes. It launched a partnership with the United Arab Emirates government last month, in which it’s helping the country speed up worker relocation by assisting with visas and flights. Meanwhile, another startup, Remote.com, is also working with governments — including Portugal’s — looking to attract workers. Filling travel and tourism jobs is critical for the travel industry’s recovery in Europe, Parsons notes.

But he adds the emerging model doesn’t address the industry’s other deep-rooted problems, especially low pay and limited career prospects for many workers.

We wrap up today with big news from Airbnb. Co-founder Joe Gebbia announced on Thursday he’s leaving his full-time role at the short-term rental giant, reports Executive Editor Dennis Schaal.

Gebbia, who co-founded Airbnb in 2008 with Brian Chesky and Nate Blecharczyk, said he will devote more time to being a father and making documentaries, among other plans. He will remain on Airbnb’s board of directors and continue to work for non-profit Airbnb.org, though. Gebbia currently holds 21 percent of the company’s voting power.