American Airlines reported a marginal decline (1.3 percent) in cargo revenue at $195 million for the second quarter of 2024 on lower yields.
Cargo tonne miles increased 21 percent to 515 million but yield per cargo tonne mile declined 18 percent to 37.87 cents compared to 46.31 cents in the same period last year, says an official release.
For the first six months of 2024, cargo revenue dropped nine percent to $382 million. Cargo tonne miles increased 18 percent to 999 million but yield was down 23 percent at 38.25 cents.
Q2 revenue up, income drops sharplyTotal operating revenue increased two percent to $14 billion but net income slipped 46 percent to $717 million compared to $1.3 billion in Q22024.
For H12024, revenue came in at $26. billion while net income plunged 70 percent to $405 million.
“American has a fleet, network and product built to deliver results but during the second quarter, we did not perform to our initial expectations due to our prior sales and distribution strategy and an imbalance of domestic supply and demand,” says Robert Isom, CEO, American Airlines. “We are taking this challenge head-on with clear and decisive actions to deliver on a strategy that maximises our revenue and profitability, and importantly, one that makes it easy for customers to do business with American. When we return to the level of revenue generation we know we can achieve, and we couple that with our operational reliability and best-in-class cost management, we will unlock significant value.”
Debt reduction continuesThe company reduced total debt by approximately $680 million in the second quarter, and is now more than $13 billion, or approximately 87 percent, toward its goal of reducing total debt by $15 billion by the end of 2025. The company ended the quarter with approximately $11.7 billion of total available liquidity, the release added.
