American Airlines has reported a strong financial performance for the first quarter of the year this week.
Based on demand recovering at an exponential pace post-COVID, this is all to the benefit of the carrier.
Without further ado, let’s get into the numbers…
American Airlines’ Financials For The First-Quarter…
For 1Q23, American Airlines reported a net income of $10 million, or $0.02 per diluted share. The net income recorded here was after special items.
As for revenue, the carrier handled $12.2bn in revenue, which is a significant increase of 37% compared to the same period last year (1Q22).
The carrier ended the quarter with $14.4bn of available total liquidity.
As for operational statistics, the carrier operated more than 476,000 flights in that period, with an average load factor of 80.0%.
Because of the strong performance of American Airlines, it was also revealed that for the first time in three years, a profit-sharing payment will be made due to targets being hit.
The airline has accrued approximately $211m to the profit-sharing pool, which will be paid to employees in May.
CEO Isom: Continued Focus on Profitability…
Commenting on the strong financial performance was American Airlines CEO Robert Isom, who said the following:
“The American Airlines team ran a great operation and delivered on our financial guidance for the quarter, resulting in a first-quarter profit for the first time in four years”.
“Looking ahead to the remainder of 2023, we remain focused on reliability, profitability, strengthening the balance sheet, and creating even more value for our shareholders, team members, customers, and the communities we serve.”
It remains clear in this case that Isom wants to ensure that profitability now remains consistent and is expected to do so over the course of the Summer 2023 season.
It remains clear that the path is up for American Airlines, as they are now coming out of the post-COVID rut that the rest of the industry has been going through.
Looking ahead, all eyes will be on the carrier to see how they perform during the Summer 2023 season, as well as what sort of demand momentum will be seen going into Winter 2023/24.
But for now, all eyes are on American Airlines to see how much further they can take this new-founded success under the guidance of Robert Isom.