American Airlines Group Inc. (NASDAQ: AAL) released its third-quarter 2024 financial results, reporting:
- A record $13.6 billion in third-quarter revenue.
- A net loss of $149 million, or $0.23 per share. Excluding special items, adjusted net income was $205 million, or $0.30 per diluted share.
- The highest completion factor among U.S. network carriers in the third quarter.
- $11.8 billion in total available liquidity by the quarter’s end.
- On track to reduce total debt by $15 billion by the end of 2025.
- Adjusted full-year earnings per diluted share are anticipated to range from $1.35 to $1.60.
American Airlines CEO Robert Isom remarked, “Our team remains committed to reliable operations and cost management across the airline. We have taken bold steps to revamp our sales and distribution strategy and reconnect with the business travel community, actions we believe will boost our revenue performance over time. Feedback from travel agencies and corporate clients has been encouraging as we build a more customer-friendly commercial approach.”
Sales and Distribution Strategy
American Airlines refined its sales strategy in response to feedback from corporate and agency partners, aiming to recover lost market share. Key moves in the third quarter included renegotiating contracts with major travel agencies and top corporate customers, reintroducing Corporate Experience benefits, and adding sales account managers to strengthen corporate and agency support.
Operational Highlights
Despite operational challenges, such as the CrowdStrike outage and Hurricanes Debby and Helene, American Airlines demonstrated resilience and achieved a high third-quarter completion factor among U.S. network carriers and reached its highest third-quarter load factor since merging with US Airways in 2013.
Financial Performance
American Airlines posted earnings ahead of its previous guidance, with record third-quarter revenue up 1.2% year-over-year. Its operating margin on a GAAP basis was 0.7%, while adjusted for special items, the operating margin reached 4.7%.
Balance Sheet and Liquidity
The airline further improved its balance sheet, reducing debt by approximately $360 million in the third quarter and achieving more than $13 billion of its $15 billion debt reduction goal set for the end of 2025. At the quarter’s close, the airline reported $11.8 billion in total available liquidity, which includes cash, short-term investments, and undrawn revolving credit facilities.
Guidance Update
Given current demand trends and fuel price forecasts (excluding special items), American Airlines expects fourth-quarter adjusted earnings per diluted share to range between $0.25 and $0.50, with full-year adjusted earnings per diluted share projected between $1.35 and $1.60.