American Airlines has reported record full-year revenue of approximately USD 53 billion, among other fourth-quarter and full-year 2023 financial results.
Breaking Down Key Results
American Airlines saw passenger revenue total USD 48.5 billion from air transportation; however, areas such as AAdvantage mileage credit redemptions amongst more. Cargo revenue came in at USD 812 million, and other revenues sat at USD 3.5 billion, bringing the total to USD 52.8 billion.
Operating expenses totalled USD 49.8 billion, with some of the highest expenses coming from fuel and related taxes, at USD 12.3 billion. However, the most significant costs were salaries, wages, and benefits, at USD 14.6 billion.
American Airlines further cited maintenance costs, such as USD 4.6 billion for regional maintenance and USD 3.3 billion for maintaining their overall fleet. Other rent and landing fees also exceeded USD 2 billion.
Total net profit for the year came in at USD 822 million, an increase of the USD 127 million net profit recorded for one year prior. However, these net profits lag behind those of other airlines that make up the big three in the U.S., including United Airlines and Delta.
Other Focal Points
American Airlines also noted that it enjoyed its best-ever fourth-quarter and full-year completion factor. Throughout the year, debt was reduced by USD 3.2 billion.
At its current pace and based on outlook, the airline believes it’ll be able to reach its 2025 total debt reduction goal; at the moment, it is already more than 75% of the way.
With almost 2 million flights across the 2023 calendar year on mainline and regional partners, load factors averaged 83.5%. Additionally, the airline said it was pleased to report the lowest mishandled baggage rate in company history over the holidays.
The American Airlines fleet also closes in on 1,000 aircraft for the mainline fleet, with this sitting at 965. Meanwhile, the regional fleet is at 556. The airline is simply reducing overall fleet age as it continues to welcome next-generation narrow and widebody aircraft.
Comments From Executives
The American Airlines team produced an exceptionally strong performance in 2023. We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.American Airlines CEO, Robert Isom.