Robert Isom emphasized the cooperative efforts during operational disruptions, stating, "My thoughts are with the communities affected by these disasters, and we’ll continue to support recovery efforts."
— Robert Isom, CEO
03Detailed Report
AAL
American Airlines Group Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
In Q3 2024, American Airlines Group Inc (AAL) reported a mixed financial performance marred by external challenges yet showing signs of resilience. The company recorded a net income of -$149 million, translating to an adjusted earnings per share (EPS) of $0.30 against an estimated impact from operational disruptions totaling around $90 million. Adjusted revenue grew by 1.2% year-over-year to $13.6 billion despite a decrease in total revenue per available seat mile (TRASM) down 2%. Management exhibited a clear commitment to regaining market share and stabilizing revenue, with initiatives focused on restoring relationships with corporate accounts and agencies following prior strategic missteps. For the upcoming quarter, AAL anticipates modest capacity growth and is on track for moderate free cash flow generation, emphasizing a balanced approach to growth and cost management moving forward.
Key Performance Indicators
Revenue
Increasing
13.65B
QoQ: -4.79% | YoY: 1.22%
Gross Profit
Decreasing
2.78B
20.36% margin
QoQ: -20.14% | YoY: -12.44%
Operating Income
Decreasing
89.00M
QoQ: -93.57% | YoY: -139.91%
Net Income
Decreasing
-149.00M
QoQ: -120.78% | YoY: -72.66%
EPS
Decreasing
-0.23
QoQ: -121.10% | YoY: -72.29%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $13.6 billion (up 1.2% YoY)
- Net Income: -$149 million (EPS: -$0.23)
- Adjusted Net Income: $205 million (EPS: $0.30)
- Operating Income: $89 million (operating margin of 0.0065)
- TRASM: down 2%; Domestic PRASM down 3.1%
- Free Cash Flow: anticipated $1 billion - $1.5 billion for FY2024
- Debt Reduction Target: aimed at $15 billion from peak levels by the end of 2025.
- Liquidity: $11.8 billion at the end of September 2024.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.65B
1.22%
-4.79%
Gross Profit
2.78B
-12.44%
-20.14%
Operating Income
89.00M
-139.91%
-93.57%
Net Income
-149.00M
-72.66%
-120.78%
EPS
-0.23
-72.29%
-121.10%
Key Financial Ratios
Gross Profit Margin
Fair
20.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
0.65%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.57
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Conservative
-8.07
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-12.40x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-1.52x
Trading below book value, potential value opportunity or distressed
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