Thursday, July 25, 2024
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American Airlines reports a record $14.3B revenue in Q2 2024, with net earnings of $717M and significant debt reduction.
American Airlines Group Inc. (NASDAQ: AAL) has announced its financial outcomes for the second quarter of 2024, revealing:
“American has a fleet, network and product built to deliver results, but during the second quarter, we did not perform to our initial expectations due to our prior sales and distribution strategy and an imbalance of domestic supply and demand,” said American’s CEO Robert Isom. “We are taking this challenge head-on, with clear and decisive actions to deliver on a strategy that maximizes our revenue and profitability, and importantly, one that makes it easy for customers to do business with American. When we return to the level of revenue generation we know we can achieve, and we couple that with our operational reliability and best-in-class cost management, we will unlock significant value.”
American Airlines has revamped its sales and distribution approach, focusing on being customer-centric while integrating feedback from corporate and agency partners. Since May, the airline has prioritized three main objectives:
Operational Achievements:
Despite severe weather affecting several key hubs in May and June, and a global technology outage on July 19, American Airlines showcased operational resilience. The airline not only managed a strong recovery but also excelled over the Fourth of July holiday, handling 7.2 million customers and achieving a 98.9% completion factor the day after the outage.
Financial Highlights:
American reported a record $14.3 billion in quarterly revenue, a 2% increase year over year, with a 9.7% operating margin for the second quarter, both on a GAAP basis and excluding special items.
Balance Sheet and Liquidity:
American is dedicated to strengthening its financial foundation. It reduced its total debt by approximately $680 million in the second quarter, reaching 87% of its goal to cut total debt by $15 billion by the end of 2025. The company concluded the quarter with around $11.7 billion in total available liquidity.
Forward-Looking Statements:
Despite improvements, previous strategies in sales and distribution may still affect American’s revenue and earnings for the rest of the year. Anticipating these impacts and considering current demand and fuel prices, the airline expects its third-quarter 2024 earnings per diluted share to be approximately breakeven, with full-year earnings projected to be between $0.70 and $1.30 per diluted share.
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