American Airlines has posted a USD 545 million loss for the third quarter of 2023.
The major airline cites a host of reasons for the loss thanks to rising costs, something now impacting carriers globally as forecasts for the fourth quarter are revealed.
Breaking Down American Airlines Results
Revenues for the third quarter broke records, reaching approximately $13.5 billion. This was attributed to $12.4 billion in passenger revenue, $193 million in cargo revenue and $868 million in other income.
However, American Airlines’ total operating expenses sat at $13.7 billion, with the most considerable costs accounting for salaries, wages and benefits at $4 billion. Notably, fuel and related taxes were at $3.2 billion.
Airlines worldwide have cited the rising fuel costs, among other areas, as a cause for concern moving into the fourth quarter despite robust demand.
American Airlines notes that a considerable amount of costs came following the agreement of a new contract with its pilots.
American Airlines Reliability
The carrier says it was happy with its third-quarter operations and record-setting performance during the peak summer season.
An average load factor of 84% was seen across its operations. This came from more than 515,000 flights operated by the prominent American carrier in the third quarter.
The airline’s completion factor was also high. American reported it had the best completion factor among the U.S. network carriers. This equated to 98.6%.
Comments From Executive
The American Airlines team continues to produce strong results. Our team is delivering record-setting reliability and operational performance. We are executing on our plans and remain well-positioned for the future, supported by the strength of our network, our young and modern fleet, and our outstanding team.American Airlines, CEO Robert Isom
Looking Ahead To The Fourth Quarter
American Airlines expects four more aircraft to be delivered by the end of the year. However, in an earnings call, the company noted that two narrowbodies were delayed until 2024.
American has been in the market for used narrowbody jets, such as the ones acquired from Alaska Airlines, as it looks towards growing its operation cheaply.
Fuel costs are also expected to rise in the fourth quarter. However, demand for bookings during the holiday season has been labelled as more than robust.