American Airlines has recently released its 10-Q report, providing a detailed insight into its financial performance for the third quarter of 2024. The company operates as a network air carrier, offering scheduled air transportation services for passengers and cargo through its extensive network of hubs and partner gateways. American Airlines reported total operating revenues of $13.6 billion for the third quarter of 2024, marking a 1.2% increase from the same period in 2023.
The 10-Q report delves into the financial overview of American Airlines, revealing key figures from its unaudited condensed consolidated financial statements. In the third quarter of 2024, the company reported a pre-tax loss of $256 million, a significant improvement from the pre-tax loss of $690 million in the third quarter of 2023. The net loss also decreased to $149 million from $545 million in the same period, indicating a substantial improvement in the company's financial performance.
Despite the challenges posed by the operating environment, American Airlines saw its passenger revenue remain relatively flat at $12.5 billion in the third quarter of 2024. The company experienced a 5.2% decrease in passenger yield on a 3.2% capacity growth year-over-year, as measured by available seat miles (ASMs). However, the load factor increased to 86.6% in the third quarter of 2024 from 84.0% in the third quarter of 2023, indicating improved efficiency in filling available seats.
Cargo revenue also saw a positive trend, increasing by 5.0% to $202 million in the third quarter of 2024, primarily due to a 10.5% increase in cargo ton miles. Other operating revenue increased by 6.0% to $922 million, driven primarily by higher revenue associated with the company's loyalty program.
A significant highlight in the report was the company's achievement in actively managing its cost structure. American Airlines reported a decrease in total operating cost per available seat mile (CASM) to 17.92 cents, marking a 4.2% decrease from 18.70 cents in the third quarter of 2023. Excluding net special items and fuel, CASM increased by 2.8% to 13.39 cents from 13.02 cents in the third quarter of 2023.
Furthermore, the report provided insights into American Airlines' liquidity position, revealing that the company had $11.8 billion in total available liquidity as of September 30, 2024, consisting of $8.5 billion in unrestricted cash and short-term investments, and $3.3 billion in total undrawn capacity under revolving credit and other facilities.
As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $12.68. For more information, read the company's full 10-Q submission here.
