DALLAS FORT WORTH- In its first-quarter 2024 financial report, American Airlines (AA) disclosed record-breaking revenue of $12.6 billion alongside a net loss of $312 million. Despite this, the company celebrated its highest-ever first-quarter completion factor, slashed total debt by almost $950 million, and remains on course to fulfil its debt reduction objective for 2025.
Subsequently, Southwest Airlines (WN) released its earnings results for the first quarter of 2024. Total operating revenues saw a year-over-year rise of 10.9%, reaching $6.3 billion. The net loss amounted to $231 million, translating to $0.39 per share, compared to $159 million, or $0.27 per share, in the previous year. The adjusted loss stood at $0.36 per share.
American Airlines First Quarter Results
American Airlines CEO Robert Isom commented,
“The American Airlines team remains dedicated to constructing a dependable, efficient, and robust airline. Although we acknowledge that our first-quarter financial outcomes are not optimal, we have established a solid groundwork. We are progressing as planned to achieve our financial objectives for the full year. Our team is executing exceptionally well, bolstering revenue through commercial endeavours, effectively controlling expenses, and generating free cash flow to enhance our financial position.”
AA is currently performing at its peak thanks to a steadfast dedication to operational excellence and robust collaboration throughout the organization. The company achieved its highest-ever first-quarter completion factor and managed to decrease its mishandled baggage rate compared to the previous year.
American Airlines delivered these impressive results despite facing challenges from air traffic control issues and significant weather disturbances across its network during the quarter.
Considering the current demand patterns and the projected fuel prices, and excluding the impact of special items, the company anticipates its adjusted earnings per diluted share for the second quarter of 2024 to fall within the range of $1.15 to $1.45.
Furthermore, American Airlines maintains its outlook for full-year adjusted earnings per diluted share, expected to range between $2.25 and $3.25.
Southwest Q1 Financial Results
Bob Jordan, President and CEO, expressed,
“While it’s disappointing to report a loss for the first quarter, we closed March with robust profits and margins. Our focus is on managing the factors within our control, and we’ve already taken swift measures to address our financial challenges and adapt to revised aircraft delivery projections. I extend my gratitude to our over 74,000 Employees for their unwavering dedication to maintaining a dependable and resilient operation amidst aircraft delivery constraints and adjusted growth projections for this year and the next.
“Despite falling short of our initial expectations, our revenue performance in the first quarter of 2024 resulted in record-breaking operating revenues and passenger numbers, alongside notable sequential improvement in nominal unit revenue compared to seasonal norms. This improvement was driven by increased managed business revenues and network adjustments, particularly evident in the March schedule.”
“While cost management remains challenging, we see the benefits of our ongoing cost-reduction efforts and remain committed to enhancing productivity and controlling discretionary spending. We’ve also achieved labor rate certainty by ratifying agreements with 11 of our labor groups in the past 18 months, including the recent agreement with our Flight Attendants.
“Meeting our financial targets is a top priority. Boeing’s recent announcement of further aircraft delivery delays poses significant challenges for 2024 and 2025. We’re responding swiftly to mitigate the operational and financial impacts while ensuring reliable flight schedules for our Customers.”
“To improve our financial performance, we’re intensifying efforts to optimize our network by addressing underperforming markets. As a result, we’ve made the tough decision to cease operations at Bellingham International Airport, Cozumel International Airport, Houston’s George Bush Intercontinental Airport, and Syracuse Hancock International Airport. I want to sincerely thank our Employees, the airports, and the communities for their tremendous support over the years.”
“In addition, we’re exploring ways to enhance the Customer Experience by studying product preferences and expectations, including onboard seating and cabin features. We’re also implementing cost-control measures, such as restricting hiring and offering voluntary time-off programs. As a result, we anticipate ending 2024 with approximately 2,000 fewer Employees compared to the end of 2023.”
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