AAG(US:AAL)2024-07-25 11:00Financial Performance - American Airlines reported record quarterly revenue of $14.3 billion in Q2 2024, a 2% increase year-over-year[3]. - The net income for the second quarter was $717 million, or $1.01 per diluted share, down 46.4% compared to the previous year[3][16]. - Total operating revenues for Q2 2024 were $14,334 million, an increase from $14,055 million in Q2 2023[27]. - Operating income excluding net special items for Q2 2024 was $1,384 million, a decrease of 36.2% compared to $2,169 million in Q2 2023[27]. - Pre-tax income excluding net special items for Q2 2024 was $1,040 million, down 42.1% from $1,797 million in Q2 2023[29]. - Net income excluding net special items for Q2 2024 was $774 million, a decrease of 43.6% compared to $1,371 million in Q2 2023[29]. - Basic earnings per share excluding net special items for Q2 2024 was $1.18, down from $2.10 in Q2 2023[29]. Cash Flow and Debt Management - The company generated approximately $1.1 billion in operating cash flow and $850 million in free cash flow during the second quarter[3]. - Total debt was reduced by approximately $680 million in Q2 2024, with a goal to decrease total debt by $15 billion by the end of 2025[3][7]. - Net cash provided by operating activities for the first six months of 2024 was $3,308 million, down from $5,096 million in the same period of 2023[33]. - Free cash flow for the first six months of 2024 was calculated as net cash provided by operating activities minus net cash used in investing activities, adjusted for short-term investments and changes in restricted cash[34]. - Free cash flow for the same period was $2,217 million[36]. Operational Metrics - Operating margin for the quarter was reported at 9.7%, both on a GAAP basis and excluding net special items[7]. - Revenue passenger miles increased by 8.5% to 65,144 million for the three months ended June 30, 2024, compared to 60,020 million in 2023[19]. - Passenger load factor improved by 0.4 percentage points to 86.6% for the three months ended June 30, 2024, from 86.2% in 2023[19]. - Cargo ton miles rose by 20.6% to 515 million for the three months ended June 30, 2024, compared to 427 million in 2023[19]. - Domestic revenue passenger miles increased by 8.6% to 43,183 million for the three months ended June 30, 2024, compared to 39,758 million in 2023[22]. - Total international revenue passenger miles increased by 8.4% to 21,961 million for the three months ended June 30, 2024, from 20,262 million in 2023[22]. - Passenger revenue for the Atlantic region increased by 7.0% to $2,019 million for the three months ended June 30, 2024, compared to $1,888 million in 2023[22]. Cost and Expense Management - Total operating expenses for the first six months of 2024 were $25,513 million, compared to $23,644 million in the same period of 2023[33]. - Total operating expenses per ASM for Q2 2024 was 17.21 cents, compared to 17.07 cents in Q2 2023[29]. - Average aircraft fuel price decreased by 5.4% to $2.78 per gallon for the six months ended June 30, 2024, from $2.94 in 2023[19]. - Passenger revenue per ASM decreased by 5.8% to 17.54 cents for the three months ended June 30, 2024, compared to 18.63 cents in 2023[19]. - Total revenue per ASM decreased by 5.6% to 19.05 cents for the three months ended June 30, 2024, from 20.18 cents in 2023[19]. Employee and Operational Growth - Full-time equivalent employees increased by 3.7% to 137,400 at the end of the period compared to 132,500 in 2023[19]. - American Airlines carried 7.2 million customers over the Fourth of July holiday, achieving its largest-ever schedule and best operational performance[6]. Balance Sheet and Assets - Total current assets increased to $14,795 million as of June 30, 2024, compared to $13,572 million at the end of 2023, reflecting a growth of approximately 9%[38]. - Total assets reached $64,125 million as of June 30, 2024, up from $63,058 million at the end of 2023, indicating a growth of about 1.7%[38]. - Current liabilities increased to $24,610 million as of June 30, 2024, compared to $22,062 million at the end of 2023, representing an increase of approximately 11.5%[38]. - Long-term debt and finance leases, net of current maturities, decreased to $27,636 million from $29,270 million, a reduction of about 5.6%[38]. - The loyalty program liability increased to $6,031 million as of June 30, 2024, compared to $5,874 million at the end of 2023, reflecting a growth of approximately 2.7%[38]. - Accumulated other comprehensive loss improved slightly to $(4,858) million from $(4,894) million, indicating a reduction in losses[38]. - Retained deficit decreased to $(7,284) million as of June 30, 2024, from $(7,689) million, showing an improvement of approximately 5.3%[38]. - Total stockholders' deficit improved to $(4,746) million as of June 30, 2024, compared to $(5,202) million at the end of 2023, reflecting a reduction of about 8.7%[38]. Strategic Initiatives - The company is focusing on improving its sales and distribution strategy to enhance customer experience and regain partner trust[2][9]. - American Airlines is expanding AAdvantage Business™ benefits to agencies, allowing companies to earn miles regardless of booking channel[9].