On August 28, 2024, an American Airlines aircraft was observed departing from Ronald Reagan Washington National Airport in Arlington, Virginia, as captured in a photograph by Kevin Carter for Getty Images.
American Airlines has increased its annual profit forecast, with CEO Robert Isom attributing this improvement to a successful shift in the company’s sales strategy undertaken earlier in the year. The airline now anticipates adjusted earnings of between 25 cents and 50 cents per share for the fourth quarter, surpassing the 29 cents projected by analysts surveyed by LSEG. For the entire year, American Airlines forecasts adjusted earnings of up to $1.60 per share, which exceeds the company’s earlier projection of no more than $1.30 per share.
In May, American Airlines made a strategic leadership change by terminating its chief commercial officer following a sales strategy that was intended to boost direct bookings but ultimately proved ineffective. The company subsequently reverted much of its sales model. CEO Isom stated in an earnings release on Thursday, “We have taken aggressive action to reset our sales and distribution strategy and reengage the business travel community, which we’re confident will improve our revenue performance over time.” He also mentioned receiving positive feedback from travel agencies and corporate clients as the company works to strengthen the foundation of its commercial strategy and simplify business transactions with American Airlines.
In terms of third-quarter performance, American Airlines reported earnings per share of 30 cents adjusted, compared to the 16 cents anticipated by Wall Street estimates compiled by LSEG. The company also reported revenue of $13.65 billion, exceeding the expected $13.49 billion. Further updates on this developing story may be forthcoming.
