Thu, Jul 25, 11:02 AM (44 days ago)
American Airlines Group Inc. (AAG) reported its financial results for the quarter ended June 30, 2024. Key highlights include: - **Revenue**: Total operating revenues increased by 2.0% to $14.3 billion, driven primarily by a 1.7% increase in passenger revenue to $13.2 billion. However, cargo revenue slightly decreased by 1.3% to $195 million. - **Expenses**: Operating expenses rose by 8.9% to $12.95 billion. Notable increases were seen in aircraft fuel costs (up 12.4% to $3.06 billion), salaries and benefits (up 8.7% to $3.95 billion), and maintenance expenses (up 17.6% to $950 million). - **Profitability**: Operating income fell by 36.0% to $1.38 billion. Pre-tax income dropped by 41.7% to $1.03 billion, leading to a net income decrease of 46.4% to $717 million. - **Cash Flow**: Net cash provided by operating activities was $3.3 billion, down from $5.1 billion in the prior year. Capital expenditures totaled $1.5 billion, primarily for new aircraft. - **Debt**: Long-term debt stood at $31.5 billion, with $4.0 billion in current maturities. - **Future Outlook**: AAG faces uncertainties, including economic conditions, competitive pressures, and regulatory challenges. The company also has significant capital commitments for new aircraft and engines, estimated at $14.0 billion through 2028. The report indicates a challenging quarter with rising costs outpacing revenue growth, impacting profitability and cash flow.