American Airlines Reports Third Quarter Net Income of $483 million or $0.69 per Diluted Share

American Airlines has reported a third quarter net profit of $483 million or $0.69 on a year-over-three revenue increase of 13 percent to $13.5 billion. At September 30, 2022, the carrier had $14.3 billion in total available liquidity.

American Airlines Reports Third Quarter 2022 Financial Results - Courtesy American Airlines

On Thursday (October 20, 2022), American Airlines reported their third quarter financial results for the period ending September 30, 2022. The carrier reported third quarter net income of $483 million or $0.69 per diluted share, and an adjusted third quarter net income of $478 million or $0.69 per diluted share. American Airlines reported record third quarter revenue of $13.5 billion, an increase of 13 percent versus the third quarter of 2019, on 9.6 percent less capacity. The company’s Q3 operating margin, excluding net special items, came in at 7.2 percent. At September 30, 2022, the airline had $14.3 billion of total available liquidity, including cash and short-term investments, plus undrawn revolving and other credit facilities.

In Thursday’s announcement, American Airlines’ CEO, Robert Isom, said,

“The American Airlines team continues to deliver on our goals of running a reliable operation and returning to profitability. Demand remains strong and it’s clear that customers in the U.S. and other parts of the world continue to value air travel and the ability to reconnect post-pandemic. American has the youngest, most fuel-efficient fleet among U.S. network carriers and we are well-positioned for the future because of the incredible efforts of our team.”

American Airlines' Third Quarter 2022 Financial Results - Courtesy American Airlines

The airline’s third quarter total revenue per available seat mile (TRASM) increased year-over-year by 33.8 percent to 19.63 cents, while costs per available seat mile (CASM) increased 33.4 percent compared to Q3 2021 to 18.28 cents. Costs excluding net special items and fuel (CASM-ex) increased year-over-year by 3.0 percent to 12.61 cents. During the third quarter, American Airlines made approximately $380 million in scheduled debt and finance lease payments. As of September 30, 2022, the company had reduced their total debt by $5.6 billion from the peak levels in the second quarter of 2021.

As measured by total departures, American flew a third quarter schedule that was 25 percent larger than their nearest competitor. Along with their regional partners, American operated over 500,000 flights during Q3, with an average load factor of 85.3 percent, 6.6 points higher than in Q3 2019.

American Airlines Third Quarter 2022 Financial Highlights - Courtesy American Airlines

American Airlines’ purpose is to “Care for People on Life’s Journey.” Shares in the American Airlines Group, Inc., trade on NASDAQ under the ticker symbol AAL and the company’s stock is included in the S&P 500.

In trading Thursday morning (October 20, 2022), shares in American Airlines Group, Inc., (NASDAQ: AAL) were down 0.39% to $13.94/share (9:41 AM EDT).

Source: American Airlines