American Airlines has tripled its net profit in the second quarter of 2023 and raised its forecast for the whole year.
Its net profit reached 1.33 billion dollars in the second quarter (or 1.88 dollars per share), against 476 million a year earlier (or 0.68 dollars per share). Its turnover increased by 4.7%, to 14.1 billion dollars. It’s about “best quarter ever ” of the American airline, indicated its CEO Robert Isom, signaling an increase “in all branches, with particularly strong demand in international travel before the summer“. “The momentum continued in July, with the best Independence Day weekend in our history“, he detailed.
On the strength of these performances, American Airlines raised its objectives for this financial year with earnings per share of between 3 and 3.75 dollars, against 2.50 to 3.50 dollars previously. These forecasts take into account the anticipated effect of ongoing salary discussions: Robert Isom has undertaken to “align with what United Airlines offersto its pilots. The latter reached a preliminary agreement last week with its pilots for an increase in their salaries of up to 40% over four years.
According to its chief financial officer Devon May, the American Airlines fleet is so new that no renewal will be necessary by 2030. So “when we invest in a device, it is to grow our network“, he explained. The American airline must receive 23 aircraft in 2023, of which thirteen have already been delivered. “We are delighted to have built our fleet in a low interest rate environment and when the supply chain was not as disrupted as it is now.“, he noted.