American Airlines has reported revenues of $14.3bn for the second quarter of the year – marking its highest ever quarterly revenue total.
The US airline also reduced its total debt by around $680m, during the quarter, and is on track to reduce debt, from peak levels, by $15bn by the end of 2025.
Nevertheless, American is still being hampered by high operational costs and its previous sales and distribution strategy and the airline has said, earnings-wise, it will only break-even in the third quarter, while it has lowered its full-year profit guidance.
“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,” said American’s CEO Robert Isom.
“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.”
