FORT WORTH (WBAP/KLIF News ) – Despite a potential strike among its pilots and flight attendants, business is booming at American Airlines.
In a second-quarter report released Thursday morning, the Fort Worth-based carrier credits the $1.34 billion profit to strong ticket sales, operational goals met and a large drop in the price of jet fuel.
The decreased gas prices saved the airline about $1.3 billion compared to the previous year.
CEO Robert Isom said the company’s strong operational results over the past year helped drive up the profit.
“And it continued as we achieved record second quarter completion factor. We operated nearly half a million flights in the quarter with an average load factor of approximately 86 percent. We also delivered more combined zero cancelled days in the same period of a year ago,” he said.
American Airlines Chief Financial Officer Devon May said the company’s performance boosted its bottom line.
“American produced record revenue of $14.1 billion dollars in the second quarter, up nearly five percent year-over-year. This revenue performance lead to our highest ever adjusted operating income of $2.2 billion,” he said.
The carrier expects to earn between $3 and $3.75 a share for the entire year, adjusting for one-time items, up from a May forecast which predicted to earn about $2.50 to $3.50.
The report also stated that American expects its third-quarter 2023 adjusted earning per diluted share to be between $0.85 and $0.95. The company’s forecast includes the estimated impact of anticipated new labor agreements.
However, due to the what Isom described as a “fantastic quarter,” American raised its profit expectations for the year.
Click here to read the full report.
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