American Airlines announced yesterday a net loss of $545 million in the third trimester, weighed down by a exceptional load almosta billion dollars linked to the new salary agreement concluded with its pilots.
Excluding exceptional items (including increases in fuel and salaries), American Airlines generated a net profit of $263 million. Reported per share – a benchmark for the markets – it comes out to 38 cents and exceeds the consensus which was counting on 25 cents. The turnover between July and September remained completely stable (+0.1%) at 13.48 billion dollars (below the market consensus, at 13.51 billion).
Based on the trend in fuel prices and demand, and excluding exceptional items, the American airline however expects an adjusted operating margin of between 2% and 4% in the fourth quarter and “about 7%” for the entire current financial year. It was 5.4% in the third quarter.
In August, American Airlines’ 15,000 pilots ratified the new four-year collective agreement negotiated with management. It provides the equivalent of 9 billion dollars in the form of new compensation and benefits, then indicated the American airline, which consequently spent an exceptional charge of 983 million dollars in the third quarter.
US airlines have been put under pressure by rising fuel prices in recent months, in addition to rising staff salaries. Shares of United Airlines fell 8% to a one-year low on Wednesday, dragging Delta Air Lines, American Airlines and Southwest Airlines down about 4% each. “We face significant headwinds related to labor and the wait for a new agreement for flight attendants, as well as ever-higher maintenance expenses“, announced Michael Leskinen, chief financial officer of United Airlines, during a conference call on the results.
Separately, a reduction in capacity due to the suspension of flights to Israel is also expected to increase United Airlines’ non-fuel costs, which are expected to increase 5% in the quarter ending December year-over-year. former. “Rising energy prices followed by the conflict between Israel and Hamas are the main culprits, two events that were not taken into account in earnings models three months ago“, Deutsche Bank analysts explained in a note.
For its part, Delta Air Lines cut its full-year profit forecast to $6-6.25 per share, from $6-7 per share in July.