American Airlines on Thursday posted a $19 million profit for the last three months of 2023, topping Wall Street estimates on the highest and bottom lines.
Shares of the corporate rose greater than 10% on Thursday.
Here’s how American performed within the fourth quarter of 2023 compared with Wall Street estimates compiled by LSEG, formerly generally known as Refinitiv:
- Earnings per share: 29 cents adjusted vs. 10 cents expected.
- Revenue: $13.06 billion vs. $13.02 billion expected.
For the last three months of 2023, American Airlines reported net income of $19 million, down nearly 98% from $803 million the 12 months prior. Earnings per share decreased to three cents from $1.14 within the fourth quarter of 2022.
Adjusting for one-time items, including the impact of a recent labor agreement with the airline’s pilots, American earned 29 cents per share.
In its third-quarter earnings report, the airline had estimated it might break even for the December period.
American Airlines’ stock price
“We’re really pleased with the outcomes, we closed out the 12 months strong,” CEO Robert Isom told CNBC’s Phil LeBeau on Thursday. “At American, we’re focused on reliability, profitability and really strengthening our balance sheet. We’ve done all of those … I feel that we’ll have a very busy first and second quarter, and I feel the time to purchase is immediately for travel. It’s going to be a busy 12 months.”
Looking ahead, American said it expects a net loss per share of between 15 cents and 35 cents, adjusted, for the primary quarter of 2024. Costs, excluding fuel, are projected to rise between 2% and 4% for the period, with flying capability up between 6.5% and eight.5%.
Boeing 787-9 Dreamliner, from American Airlines company, taking off from Barcelona airport, in Barcelona on twenty fourth February 2023.
JanValls | Nurphoto | Getty Images
For full-year 2024, American expects adjusted earnings per share of $2.25 to $3.25 with flying capability up mid-single digits over 2023.
In a letter to American team members, Isom said the strength of the business meant all U.S. and Canada-based employees will receive a profit-sharing payment in March.
The earnings report comes on a busy day for the airline industry, with Southwest and Alaska also reporting fourth-quarter earnings Thursday. United Airlines on Monday posted higher-than-expected earnings and revenue and a sunny forecast for 2024.
Carriers have been navigating tricky winter weather within the early weeks of January, but American said it achieved its best-ever on-time departures over the December holidays.
Industry eyes have been on the Boeing 737 Max 9 plane of late after that aircraft model was grounded by the Federal Aviation Administration earlier this month following an Alaska Airlines midflight incident.
American doesn’t have any of those planes in its fleet, but it surely does have the more common 737 Max 8, with 20 more planned for this 12 months, in keeping with Isom. However, late Wednesday, the FAA said it might halt Boeing’s ability to extend 737 Max production, which could hit future deliveries of aircraft.
“Boeing must get their act together. The issues that they have been coping with over the recent time frame, but in addition going back a lot of years now, is unacceptable,” CEO Isom said on an earnings call Thursday.
