American Airlines records first-quarter loss of US$312 million

American Airlines (American) has achieved record first-quarter revenue of approximately US$12.6 billion. However, it reported a net loss of US$312 million. Excluding net special items, the net loss was US$226 million.

Despite challenges, American Airlines Group attained its best-ever first-quarter completion factor. It generated operating cash flow of US$2.2 billion and free cash flow of US$1.4 billion during the quarter. This reduction brings the company more than 80% closer to its 2025 total debt reduction goal.

“The American Airlines team continues to build a reliable, efficient and resilient airline,” said American’s CEO Robert Isom. “While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet.”

Despite the significant increase in fuel costs during the quarter, American Airlines managed to meet its operating metrics within previously guided ranges. The company achieved record first-quarter revenue and a GAAP operating margin of 0.1%. Excluding the impact of net special items, the operating margin was 0.6%.

The company’s priority remains strengthening its balance sheet. It reduced total debt by nearly US$950 million in the first quarter, surpassing US$12 billion, or over 80%, of its US$15 billion total debt reduction goal by the end of 2025.

Looking ahead, based on current demand trends and fuel price forecasts, and excluding the impact of special items, American Airlines expects its adjusted earnings per diluted share for the second quarter of 2024 to be between US$1.15 and US$1.45. The company also maintains its full-year adjusted earnings per diluted share guidance of between US$2.25 and US$3.25.