American Airlines’ financial performance continues to show a profit in the three months until June 30th 2023. The airline remains in the black for the fifth consecutive quarter. This is yet another tremendous achievement for the company, given the fact that many airlines have been struggling in the aftermath of the pandemic to make continuous profits.
As we know, when the pandemic struck, many governments around the world heavily restricted air travel in order to reduce the spread of the disease. As a result, many airlines made heavy losses. American Airlines’ financial performance was also affected. To make matters worse, when restrictions were lifted, both airports and airlines struggled as there was a post-pandemic surge in demand for flights, and the large influx of passengers into airports caused high levels of congestion. This is because the airports and airlines were short-staffed due to mass layoffs during the pandemic when demand was less. More time was needed to recruit new staff, especially since many previous staff were now in other fields. In North America the situation meant that at times of particularly high demand, such as during last year’s Independence Day weekend, there were mass delays and cancellations of flights in both the US and Canada.
American Airlines’ Financial Performance
Fortunately, however, airlines in general are recovering, and in the case of American Airlines, the situation bodes well. In terms of American Airlines’ financial performance, in the three months up to 30th June 2023, the company made a profit of 1.338 billion US dollars. This is almost three times higher than the 476 million US dollars made in the three months up to 30th June 2022. In addition, it is also a dramatic improvement from the previous quarter. In the three months up to 31st March 2023, the company still made a profit but there was a dip with a figure of only 10 million US dollars. This shows that the dip in profits has now been reversed and the airline is also faring better than last year.
In terms of revenue (total money received American Airlines’ financial performance has also improved, resulting in operating revenue (total money received from services provided) of 14.055 billion US dollars. This is 4.7% higher than the 13.422 billion US dollars made in the three months up to 30th June 2022. This shows that American Airlines is attracting more business. As one can see, profit has improved considerably by almost three times, whereas revenue has improved by only 4.7%. This shows that cost control has improved greatly in American Airlines. The fact that revenue has only increased by 4.7% indicates that the airline may need to do more to attract customers to make further profits. Nevertheless, cost control has improved considerably resulting in a much improved bottom line, which is very good news for the company.
The Company’s Response
Regarding the company’s response to American Airlines’ financial performance, the company’s Chief Executive Officer, Robert Isom, has said that this quarter’s performance is fantastic news for the airline. He adds that this has been driven by the team’s continued hard work to deliver a reliable operation and the strong demand for their services. He has commented that they have worked to refresh their fleet and build a comprehensive global network which helped to generate record revenues. He goes on to say that they plan to build on this momentum in the rest of the year.
As one can see, overall the news is positive in terms of American Airlines’ financial performance. It appears that the airline’s Chief Executive has also made positive comments about the company’s performance and hopes to continue to momentum in the rest of the year. We have to wait to see how this progresses.