Financial Data and Key Metrics - The company reported a Q3 adjusted pretax profit of $271 million, exceeding guidance, with adjusted earnings per diluted share of $0.30 [6] - Q3 revenue reached a record $13.6 billion, up 1.2% YoY, with unit revenue down 2% YoY on 3.2% more capacity [14] - Adjusted EBITDAR margin was 11.1%, and adjusted operating margin was 4.7% [14] - Unit cost, excluding net special items and fuel, increased by 2.8% YoY, driven by disruptions from hurricanes and the CrowdStrike outage [14] - Free cash flow for Q3 was approximately $170 million, bringing the total for the first three quarters to $2.4 billion [16] Business Line Performance - Domestic PRASM declined by 3.1% YoY, but flown yields in September were positive YoY [7] - Long-haul international unit revenue grew YoY, driven by strength in the Atlantic and South America markets [7] - Premium revenue increased by 8% YoY on 3% more capacity, with premium cabin paid load factor up over 4 points YoY [8] - Loyalty revenues grew by 5% YoY, with AAdvantage members contributing 72% of premium cabin revenue [8] - Managed business revenue increased by 6% YoY, reflecting strength in corporate demand [8] Market Performance - Domestic capacity growth decelerated from July, improving the balance of supply and demand [7] - Short-haul Latin RASM showed the largest sequential improvement from Q2 to Q3, driven by better industry supply conditions [7] - Transatlantic performance remained strong, with positive YoY unit revenue growth [7] Strategy and Industry Competition - The company is focused on regaining corporate and agency revenue share, aiming for full restoration by the end of 2025 [9][12] - New incentive-based agreements with TMCs and agencies have been established, with over half of the largest partners already signed [10] - The relaunch of the corporate experience program and amendments with top corporate customers aim to enhance customer benefits and loyalty [10] - The company is reengineering its business to drive efficiency, targeting $400 million in cost savings for 2024 [17] Management Commentary on Operating Environment and Outlook - The company faced operational challenges from hurricanes and the CrowdStrike outage, which reduced Q3 earnings by approximately $90 million [6] - Management expects Q4 TRASM to decline by 1% to 3%, with full-year TRASM down 3% to 4% versus 2023 [17] - Q4 capacity is expected to grow by 1% to 3%, with full-year capacity up 5% to 6% [16] - The company forecasts Q4 adjusted operating margin between 4.5% and 6.5%, with full-year adjusted EPS of $1.35 to $1.60 [18] Other Key Information - The company ended Q3 with $11.8 billion in total available liquidity and is on track to reduce total debt by at least $13 billion from peak levels by year-end [16] - Aircraft CapEx for 2024 is expected to be $1.7 billion, with total CapEx at $2.6 billion, a $300 million reduction from July guidance [15] - The company plans to deliver 17 new aircraft in 2024, with 7 expected by year-end [15] Q&A Session Summary Question: Revenue Growth and Corporate Recovery - The company is confident in regaining GDP-style revenue growth, driven by corporate managed business growth of 6% in Q3 and ongoing efforts to restore corporate and agency revenue share [23][24] - Corporate and agency indirect revenue share has improved from 11% below historical levels to 7% below, with further recovery expected [24] Question: Co-brand Credit Card Negotiations - Negotiations for the co-brand credit card program are ongoing, with progress described as being in the "bottom of the seventh inning" [27] Question: Q4 RASM Guidance - Q4 RASM is expected to decline by 1% to 3%, with strong demand in October and December offset by softness around the election and Halloween [29] Question: 2025 Capacity and CASM - 2025 capacity is expected to grow in the low-single digits, with CASM pressures primarily from salary and benefit increases due to new labor agreements [30][31] Question: Distribution Channel Recovery - The company estimates a $1.5 billion revenue gap from lost corporate and agency share, with progress expected to accelerate into 2025 [33] Question: Fleet Reconfiguration - The company plans to reconfigure 777-300s starting in 2025, with no significant impact on Q4 capacity [35] Question: Fuel and Core Performance - Q4 core performance is expected to be flat YoY, with fuel prices forecasted between $2.20 and $2.40 per gallon [37] Question: Network Strategy - The company is focused on leveraging its existing network and partnerships, with no immediate plans for significant network changes [39][40] Question: Product and Customer Experience - The company is investing in premium seating, Wi-Fi, and lounge experiences to enhance customer satisfaction and drive revenue growth [49][50][51] Question: Corporate Relationship Recovery - The company is making progress in renegotiating corporate contracts, with positive feedback from corporate customers and agencies [54][55] Question: Fleet Delays and Utilization - Fleet delays are impacting 2025 capacity planning, but the company can push utilization if needed [59][60] Question: Maintenance and Technology - The company is exploring new technologies, including drones and AI, to improve maintenance efficiency and operational performance [64][65][66] Question: Loyalty Program Adjustments - The company is continuously evaluating its loyalty program to better engage customers and enhance value [69] Question: Free Wi-Fi and Revenue Impact - The company is not concerned about revenue headwinds from potential free Wi-Fi offerings, as it plans to expand coverage and remain competitive [71] Question: CapEx and Debt Reduction - The company remains committed to its $15 billion debt reduction goal, with potential for further debt paydown depending on free cash flow and liquidity [73] Question: AI and Efficiency - The company is investing in AI and technology to drive efficiency, with $400 million in cost savings targeted for 2024 and further improvements expected in 2025 [77][78][79] Question: Corporate Strategy Missteps - The company acknowledged missteps in its sales and distribution strategy, leading to revenue declines, but is now focused on regaining customer trust and revenue share [82][83] Question: Cabin Refurbishment and Election Impact - Cabin refurbishment for 777-300s and 321s is ongoing, with delays due to supply chain constraints [87] - The company expects a temporary lull in bookings around the election and Halloween, but overall demand remains strong [86]

Thursday, October 24, 2024Pre-market futures are mixed on a plethora of data this morning. Weekly Jobless Claims and some key Q3 earnings reports from a wide array of industries are having some effect here, as are the pending news items in the next couple weeks, culminating in the General Election on November 5th and a new Fed decision on interest rates on November 7th.The Dow is -71 points at this hour, balanced somewhat by the +27 points on the S&P 500 and +181 points on the Nasdaq. Bond yields continue t ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: CC0 Public Domain American Airlines is looking to revamp its boarding process with some new technology that will flag people who board with the wrong group. The Fort Worth, Texas-based airline is in an early phase of testing at Albuquerque International Sunport and Tucson International Airport. Soon, the airline said, ...

American Airlines (AAL) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 130.77%. A quarter ago, it was expected that this world's largest airline would post earnings of $1.04 per share when it actually produced earnings of $1.09, delivering a surprise of 4.81%.Over the last four quart ...

An American Airlines aircraft departs from Ronald Reagan Washington National Airport on August 28, 2024 in Arlington, Virginia.American Airlines third-quarter earnings and forecast for the last three months of the year topped analysts' estimates.Here is how American performed in the third quarter compared with Wall Street estimates compiled by LSEG:Earnings per share: 30 cents adjusted vs. 16 centsRevenue: $13.65 billion vs. $13.49 billion expectedThis is breaking news. Check back for updates. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share AAL The Nasdaq Global Select Market Preferred Stock Purchase Rights — (1) FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2024 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For t ...

Exhibit 99.1 Corporate Communications mediarelations@aa.com Investor Relations investor.relations@aa.com FOR RELEASE: Thursday, Oct. 24, 2024 AMERICAN AIRLINES REPORTS THIRD-QUARTER 2024 FINANCIAL RESULTS FORT WORTH, Texas –– American Airlines Group Inc. (NASDAQ: AAL) today reported its third-quarter 2024 financial results, including: • Record third-quarter revenue of $13.6 billion. • Third-quarter net loss of $149 million, or ($0.23) per share. Excluding net special items , thirdquarter net income of $205 ...

The US government fined American Airlines $50 million for failing to provide wheelchair assistance to passengers with disabilities and damaging thousands of wheelchairs over a five-year period.The Transportation Department said Wednesday that “in some cases,” wheelchair users were injured, but it did not give a number.American said it has made significant investments to improve the handling of wheelchairs. The airline will be credited $25 million, or half of its civil penalty, for those investments and comp ...

The widely diversified Zacks Transportation sector is facing multiple headwinds, ranging from inflationinduced elevated interest rates, weak freight demand and lingering supply-chain woes. Geopolitical uncertainties and higher inflation continue to hurt consumer sentiment and growth expectations. The freight market downturn, driven by excess freight capacity than freight volumes, has also hit the sector hard. However, the decline in fuel expenses represents a tailwind for the transportation sector. Notably, ...

Analysts on Wall Street project that American Airlines (AAL) will announce quarterly earnings of $0.13 per share in its forthcoming report, representing a decline of 65.8% year over year. Revenues are projected to reach $13.49 billion, increasing 0.1% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 43.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this ...