American Airlines recorded a quarterly revenue of $14.1 billion, a 4.7% increase year over year. The airline recorded net income of $1.3 bn. Excluding net special items; the airline’s income stood at $1.4 billion.
The Group generated operating cash flow of $1.8 billion and free cash flow of $1.2 billion and ended Q2 with $14.9 billion of total available liquidity. Fitch Ratings upgraded American Airline Groups credit rating by two notches to B+.
“It was another fantastic quarter for American, driven by the hard work of our team to deliver a reliable operation for our customers and the continued strong demand for our product,” said Robert Isom, chief executive, American. “Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter. We will build on this momentum the rest of the year and continue to prioritize reliability, profitability, accountability and strengthening our balance sheet.”
The American Airlines team delivered a strong operational performance during the quarter, achieving its best-ever second-quarter completion factor and controllable completion factor. American and its regional partners operated nearly 500,000 flights, with an average load factor of approximately 86%.
The Group produced record quarterly revenues of $14.1 billion in the Q2 driven by revenue performance was driven by continued broad-based demand strength and American’s completion factor performance in the quarter.
The Group recorded a particularly strong in June driven by an increase in close-in bookings. Domestic and short-haul international revenue continue to perform well, and the airline has seen noticeable strength in long-haul international demand and yield performance.
In the second quarter, the company produced an operating margin of 15.4% and net income of $1.3 billion on a GAAP basis. Excluding net special items, American produced net income of $1.4 billion in the second quarter.
American generated operating cash flow and free cash flow of nearly $1.8 billion and $1.2 billion, respectively, in the second quarter. The company reduced total debt by $387 million in the quarter.
Strengthening the balance sheet continues to be a top priority, and American is nearly two-thirds of the way to its goal of reducing total debt by $15 billion by the end of 2025.
As of June 30, 2023, American had reduced its total debt by approximately $9.4 billion from peak levels in mid-2021. The company ended the quarter with approximately $14.9 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.