American Airlines Group announced its financial results for the quarter from April to June 2024.
Revenue reached $14.3 billion, marking the highest in any quarter to date. Net income was $717 million, and excluding special items, it amounted to $774 million. Revenue from premium classes increased by 9% over the previous year, while seat occupancy increased by 6%.
Adjusted earnings per share were nearly at break-even in the third quarter, and for the full year, it is projected to be between $0.70 and $1.30, lowering the profit forecast. A new distribution strategy had an impact of approximately $750 million in the first half of the year.
CEO Robert Isom acknowledged mistakes in the distribution strategy towards corporations and travel agencies and the effects of supply-demand imbalances, stating, “We are dealing with these challenges head-on with clear and decisive actions. Importantly, we are focusing on making transactions with American Airlines as easy as possible for our customers. By returning to the level of revenue we know we can achieve and combining it with operational reliability and industry-leading cost management, we can unlock significant value.”
In June, the company resumed fare sales through traditional distribution channels used by travel agencies and corporations, which generated about $14 billion in revenue in 2023. It has also signed new incentive deals for market share recovery. Furthermore, plans such as not earning miles for bookings made outside direct channels have been scrapped. In August, a significant increase in support resources for operations was implemented.
