American Airlines report solid fourth quarter and full year 2023

American Airlines produced revenue of $53bn for the full year 2023, booking $13bn in the fourth quarter. The Us carrier booked GAAP fourth-quarter and full-year net income of $19 million and $822 million. Excluding the impact of net special items, American produced an operating margin of 5.1% in the fourth quarter, exceeding the high end of the company’s prior guidance.  

The airline stated that these “record” results were driven by “continued strong demand for American’s product, record revenue from its travel rewards program, strong operational performance and effective cost control”.  

“The American Airlines team produced an exceptionally strong performance in 2023,” said American’s CEO Robert Isom. “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.”  

American and its regional partners operated nearly two million flights in 2023, with an average load factor of 83.5%. The company produced its best-ever fourth-quarter and full-year completion factor, with the lowest number of cancellations annually since the merger in 2013.  

Strengthening the balance sheet remains a top priority for the company. American revealed that it had reduced total debt by more than $500 million in the fourth quarter and by approximately $3.2 billion in 2023. The company says it is more than 75% of the way to its goal of reducing total debt by $15bn by the end of 2025. As of December 31, 2023, American had reduced its total debt by approximately $11.4bn from peak levels in mid-2021.  

American ended the year with approximately $10.4bn of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.  

However, the airline is still more cautious heading into the first quarter of 2024, stating that based on present demand trends and the current fuel price forecast, it expects its Q1 2024 adjusted loss per diluted share to be between ($0.15) and ($0.35). American expects its full-year 2024 adjusted earnings per diluted share to be between $2.25 and $3.25.  

American Airlines took delivery of 23 new mainline aircraft in 2023, and expects to take delivery of 28 new mainline aircraft, including 20 737 MAX 8, six 787-9 and two A321neo aircraft, in 2024. Teh carrier's 2024 aircraft CapEx is expected to be approximately $2.3bn, and its2024 non-aircraft CapEx is expected to be approximately $850 million.