- American Airlines posted a $10 million profit in the first quarter as airline operations ramped up.
- A jump in sales outweighed higher costs.
- For the second quarter of the year, American is forecasting adjusted earnings per share at the high end of analysts’ expectations
An American Airlines Boeing 787-9 Dreamliner lands at Miami International Airport in Miami, Florida on December 10, 2021.
Joe Raedle | Getty Images
American Airlines posted a $10 million profit in the first quarter as flight operations ramped up and a jump in revenue outpaced higher costs.
American’s revenue rose 37% to $12.19 billion in the first three months of the year, which is roughly in line with analyst estimates.
Here’s how American Airlines performed in the first quarter versus Wall Street expectations, based on an average of analyst estimates compiled by Refinitiv:
- Adjusted earnings per share: 5 cents versus expected 5 cents
- Total sales: $12.19 billion versus $12.20 billion expected
Revenue of $12.19 billion was 37% higher than the same period last year. The airline’s net income for the quarter of $10 million, or 2 cents a share, marks a dramatic improvement from the first quarter of 2022, when American lost $1.64 billion, or $2.52 a share.
Excluding charges related to its debt refinancing, American earned an adjusted 5 cents per share in the first quarter, in line with analyst expectations.
For the second quarter of the year, American is forecasting adjusted earnings per share of between $1.20 and $1.40, which is on the high end of analyst expectations.
The Fort Worth-based airline expects revenue per available seat mile to be 2% to 4% down year-on-year on a capacity increase of up to 5.5%.
American CEO Robert Isom said delayed aircraft deliveries from manufacturers are hampering the airline’s growth.
“Plane manufacturers, both Boeing and Airbus, need to do a better job,” Isom said in an interview with CNBC’s Squawk Box on Thursday. “If we don’t get a delivery on time, you know what? We go out and have to cancel flights. This affects thousands of customers.
“We must hold them accountable,” Isom said.