Robert Isom: "Our revenue performance is not where we want it to be. In May, we made a sizable adjustment to our revenue and earnings expectations for the second quarter... We know we can do better and we will rise to meet this challenge."
— Robert Isom
03Detailed Report
AAL
American Airlines Group Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
American Airlines Group Inc. reported strong revenue of $14.34 billion in Q2 2024, marking an increase of 2% year-over-year. However, the airline faced significant challenges, resulting in a net income of $717 million, a decline of over 46% compared to the previous year. The management acknowledged that while record revenue was achieved, a misalignment in domestic supply-and-demand dynamics negatively impacted pricing power, leading to a decrease in unit revenue by 5.6% year-over-year. The company is undergoing a strategic reset in its sales and distribution channels, aiming to retain its competitive edge and improve profitability. Management has indicated that return to historical revenue performance will involve aggressive scalability in capacity and a robust shift in its customer engagement strategies.
Key Performance Indicators
Revenue
Increasing
14.33B
QoQ: 14.03% | YoY: 1.99%
Gross Profit
Decreasing
3.48B
24.28% margin
QoQ: 72.19% | YoY: -16.08%
Operating Income
Decreasing
1.38B
QoQ: 1 697.40% | YoY: -36.01%
Net Income
Decreasing
717.00M
QoQ: -329.81% | YoY: -46.41%
EPS
Decreasing
1.09
QoQ: -327.08% | YoY: -46.83%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance:
- Revenue: $14.34 billion (up 2% YoY)
- Net Income: $717 million (down 46% YoY)
- EPS: $1.09 Operational Efficiency:
- Adjusted Operating Margin: 9.7%
- EBITDA Margin: 15.7% Cost Management:
- Total Debt: $38.1 billion
- Cash Flow: $850 million free cash flow generated with $11.7 billion liquidity at end of Q2.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
14.33B
1.99%
14.03%
Gross Profit
3.48B
-16.08%
72.19%
Operating Income
1.38B
-36.01%
1 697.40%
Net Income
717.00M
-46.41%
-329.81%
EPS
1.09
-46.83%
-327.08%
Key Financial Ratios
Gross Profit Margin
Fair
24.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
9.66%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.00%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.12%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.15%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.60
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Conservative
-8.03
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
2.53x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
-1.53x
Trading below book value, potential value opportunity or distressed
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