American Airlines Q2 2023 Earnings Report
Key Takeaways
American Airlines reported a strong second quarter with record revenue of $14.1 billion, a 4.7% increase year-over-year. The company achieved a net income of $1.3 billion, or $1.88 per diluted share, and generated $1.2 billion in free cash flow. American is raising full-year adjusted EPS guidance to between $3.00 and $3.75 per diluted share.
Record quarterly revenue of $14.1 billion, a 4.7% increase year over year.
Net income of $1.3 billion, or $1.88 per diluted share.
Generated free cash flow of $1.2 billion in the second quarter.
Raising full-year adjusted EPS guidance to between $3.00 and $3.75 per diluted share.
American Airlines
American Airlines
American Airlines Revenue by Segment
American Airlines Revenue by Geographic Location
Forward Guidance
The company expects its third-quarter 2023 adjusted earnings per diluted share to be between $0.85 and $0.95. American now expects its full-year 2023 adjusted earnings per diluted share to be between $3.00 and $3.75. The company’s forecasts include the estimated impact of anticipated new labor agreements.
Positive Outlook
- Third-quarter 2023 adjusted earnings per diluted share to be between $0.85 and $0.95.
- Full-year 2023 adjusted earnings per diluted share to be between $3.00 and $3.75.
- Forecasts include the estimated impact of anticipated new labor agreements.
- Demand trends remain strong.
- Fuel price forecast is favorable.
Challenges Ahead
- Guidance excludes the impact of special items.
- The company is unable to reconcile certain forward-looking projections to GAAP.
- New labor agreements may impact earnings.
- Weather and air traffic control challenges.
- Potential economic slowdown.
Revenue & Expenses
Visualization of income flow from segment revenue to net income