American Airlines Reported Record Revenues in 2024

Redacción - Aviación al Día

5 months ago

American Airlines released its financial and operational results for the fourth quarter and the entire year of 2024 this Thursday, achieving significant milestones that strengthen its position in the industry. This analysis details the airline’s achievements, challenges, and prospects, highlighting record figures and key strategic decisions.

Highlighted Financial Results

American Airlines achieved record revenues in 2024:

Fourth-quarter revenues: $13.7 billion.
Annual revenues: $54.2 billion.

GAAP net income was:

$590 million in the fourth quarter ($0.84 per diluted share).
$846 million annually ($1.24 per diluted share).

Excluding special items, adjusted income was higher:

$609 million in the fourth quarter ($0.86 per share).
$1.4 billion for the full year ($1.96 per share).

Additionally, the airline generated:

$4 billion in annual operating cash flow.
$2.2 billion in free cash flow, a record for the company.

Strategic Initiatives and Partnerships

One of the most relevant announcements was the exclusive 10-year agreement with Citi, effective from 2026. This agreement positions Citi as the sole issuer of AAdvantage co-branded cards in the United States, which:

Will enhance value for AAdvantage members and Citi.
Generated $6.1 billion in cash compensation, a 17% increase compared to 2023.

This agreement included a one-time payment in 2024, which will be amortized over its duration, with no immediate impact on revenues.

Operational Performance

Despite challenges such as extreme weather conditions, American Airlines demonstrated resilience:

Ranked second in completion factor and on-time departures among the four largest U.S. airlines.
Recorded its second-best completion factor since the merger with US Airways.
Managed the highest passenger volume in its history.

Continuous investments in technology and operations promise further improvements in reliability and resilience to disruptions.

Financial Strengthening and Debt Reduction

American Airlines successfully reduced its total debt by $15 billion from peak levels in 2021, achieving this goal one year ahead of schedule. By the end of 2024, the company reported:

$10.3 billion in total available liquidity.
A consistent focus on reducing debt to achieve a target credit rating of BB.

Projections for 2025

Although American Airlines anticipates an adjusted loss per share in the first quarter of 2025 (between $0.20 and $0.40), it projects strong annual performance, with adjusted earnings per share between $1.70 and $2.70.