american airlines The company on Thursday posted a $19 million profit for the final three months of 2023, beating Wall Street expectations on both revenue and bottom line.
The company’s stock price soared more than 10% Thursday afternoon.
Below are American Airlines’ fourth quarter 2023 results compared to Wall Street expectations compiled by LSEG (formerly Refinitiv).
- Earnings per share: Adjusted price of 29 cents, forecast 10 cents per share.
- Revenue: $13.06 billion versus the expected $13.02 billion.
American Airlines reported net income of $19 million for the final three months of 2023, down nearly 98% from $803 million a year earlier. Earnings per share decreased to 3 cents from $1.14 in the fourth quarter of 2022.
Adjusting for one-time items, including the impact of a new collective bargaining agreement with airline pilots, American Airlines earned 29 cents per share.
In its third quarter earnings report, the company predicted it would break even in the December quarter.
American Airlines stock price
“We’re really happy with the results. It’s a strong way to end the year,” CEO Robert Isom told CNBC’s Phil LeBeau on Thursday. “At American Airlines, we’re focused on reliability, profitability and strengthening our balance sheet. We’ve done all of those things…I think the first and second quarters are going to be very busy. If you want to go, now is the time to buy. It looks like it’s going to be a busy year.”
Looking ahead, American said it expects its adjusted net loss per share to be between 15 cents and 35 cents in the first quarter of 2024. Excluding fuel, costs are expected to rise by 2% to 4% over the same period with flying. Capacity increases by 6.5% to 8.5%.
An American Airlines Boeing 787-9 Dreamliner takes off from Barcelona Airport on February 24, 2023 in Barcelona.
Jean Vals | Null Photo | Getty Images
For the full year 2024, American expects flight capacity to increase by mid-single digits from 2023, with adjusted earnings per share in the range of $2.25 to $3.25.
In a letter to U.S. team members, Isom said all employees based in the U.S. and Canada will receive a profit share in March due to strong business.
The financial results come on a busy day for the airline industry. southwest and alaska Fourth quarter earnings will also be announced on Thursday. united airlines on Monday announced better-than-expected earnings and earnings and gave a positive outlook for 2024.
Airlines have been weathering harsh winter weather for the first few weeks of January, but American Airlines announced it achieved record on-time departures during the December holiday.
The industry’s attention is boeing The 737 Max 9 aircraft was recently used after being grounded by the Federal Aviation Administration earlier this month following an accident during an Alaska Airlines flight.
American Airlines doesn’t have these planes in its fleet, but it does have the more popular 737 Max 8, with 20 more planned this year, Isom said. However, late Wednesday, the FAA announced it would halt Boeing’s ability to increase production of the 737 Max, potentially impacting future aircraft deliveries.
“Boeing needs to get its act together. The problems we’ve been dealing with not just recently, but going back several years, are unacceptable,” CEO Isom said during an earnings call Thursday.
Don’t miss the next story from CNBC PRO.
