American Airlines Group Inc. has announced its financial results for the third quarter of 2024, highlighting a record revenue of $13.6 billion, despite reporting a net loss of $149 million, or $0.23 per share. The results indicate ongoing efforts to strengthen the airline’s financial position and enhance its sales and distribution strategies.
Record Revenue: The airline achieved third-quarter revenue of $13.6 billion, marking a 1.2% increase compared to the same period last year.
Net Loss and Adjusted Income: American Airlines reported a net loss of $149 million, or ($0.23) per share. However, excluding special items, the company posted a net income of $205 million, or $0.30 per diluted share.
Operating Margins: On a GAAP basis, the operating margin stood at 0.7% for the quarter. Adjusted for special items, the operating margin was 4.7%.
Available Liquidity: The airline ended the quarter with $11.8 billion in total available liquidity, including cash, short-term investments, and undrawn credit facilities.
Debt Reduction: The company has made significant progress in reducing its debt, lowering total debt by approximately $360 million during the quarter.
American Airlines is on track to achieve its target of reducing total debt by $15 billion from peak levels by the end of 2025, having already reduced it by more than $13 billion.
Strategic Initiatives and Future Outlook
American Airlines has been actively working to regain market share and strengthen its sales and distribution network. In the third quarter, the airline:
Renegotiated Contracts: Finalised new competitive agreements with a majority of its top travel agencies and corporate clients, reflecting efforts to respond to industry feedback.
Corporate Travel Benefits: Reintroduced Corporate Experience benefits, aimed at enhancing the experience for business travellers.
Increased Sales Support: Expanded its sales team by adding more account managers and support staff to improve engagement with corporate and agency customers.
American Airlines expects its full-year adjusted earnings per diluted share to range between $1.35 and $1.60, reflecting optimism about future performance.
The airline’s continued focus on debt reduction and operational efficiency aligns with its strategic goals of achieving long-term financial stability.
The airline also led U.S. network carriers in terms of completion factor during the third quarter, underscoring its operational reliability.
As it continues to strengthen its balance sheet, American Airlines is committed to maintaining liquidity, managing costs, and expanding its service offerings to meet customer needs.
Robert Isom, American’s CEO, noted, “Our third-quarter results demonstrate the strength of our core business and the progress we are making on our strategic priorities.
“We will continue to focus on enhancing our customer experience, reducing costs, and creating value for our shareholders.”
As the airline looks ahead, it remains committed to evolving its operations and sales strategies to navigate the challenges of a competitive market and to achieve its long-term goals.
