American Airlines has reported record revenues of $14.3bn in its second quarter 2024 earnings report. Net income was $717 million, or $1.01 per diluted share.
Its net income was $717 million in the quarter, down 46% from $1.3bn a year prior.
The airline generated an operating cash flow of around $1.1bn and free cash flow of approximately $850 million during the period. In addition, it had reduced its debt by $680 million.
Its full year adjusted earnings per share (EPS) is expected to be between $0.70 and $1.30. It had initially forecast a full year EPS of $2.25-$3.25 back in April after its first quarter. Capacity is expected to grow around 3.5% in the second half of the year.
""We're going to react to the marketplace and make sure that we're competitive but at the same time doing what is right for profitability,"" said American CEO Robert Isom in an earnings call. ""As we look into 2025, we are going to be very diligent in assessing and making sure that we're certainly not outgrowing demand.""
American also turned back on its heavily criticised direct-to-consumer sales strategy which is expected to have had an approximate $750 million impact on the company during the first six months of the year. ""American has taken aggressive action to improve its revenue performance, however, the company’s previous sales and distribution strategy will continue to impact its revenue performance and earnings through the remainder of the year,"" it read in a statement.
Isom commented: ""We’re renegotiating our agency contracts right now and getting new agreements in place and we’re reaching out to our corporate. So our intent is certainly to do everything we can to get back on a better pace.""
American Airlines reports record revenues in second quarter
