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American Airlines Group Inc. has announced its financial outcomes for the first quarter of 2024, revealing:
- A record-breaking revenue of roughly $12.6 billion for the first quarter.
- A net loss of $312 million, equivalent to ($0.48) per diluted share. When adjusting for specific items, the net loss stands at $226 million, or ($0.34) per diluted share.
- The highest first-quarter completion factor ever recorded by the company.
- An operating cash flow of $2.2 billion and a free cash flow of $1.4 billion during the period.
- A substantial debt reduction, cutting nearly $950 million in the first quarter, reaching over 80% of its debt reduction target set for 2025.
“The American Airlines team continues to build a reliable, efficient and resilient airline,” said American’s CEO Robert Isom. “While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet.”
Operational Highlights
American Airlines has excelled operationally, achieving its best first-quarter completion rate to date. This success has come despite challenges such as air traffic control issues and significant weather disruptions. The airline also saw improvements in its mishandled baggage rates compared to last year.
Financial Insights
Despite rising fuel costs, American Airlines maintained its financial performance within its projected ranges for all operational metrics. The company also reported a first-quarter GAAP operating margin of 0.1%, which adjusts to 0.6% when excluding specific items.
Balance Sheet Focus
American continues to prioritize strengthening its balance sheet. This quarter, it reduced its total debt by nearly $950 million, surpassing $12 billion or more than 80% of its $15 billion debt reduction target by the end of 2025.
The post American Airlines Targets Full-Year Goals After $312 Million Net Loss in First-Quarter 2024 appeared first on Travel And Tour World.
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