American Airlines Sees First Full Year of Profitability Since 2019
The expenses at American Airlines were billions higher in 2022, but so was revenue, making the year an overall success looking at dollars aloneDespite a number of constraints in the aviation industry, American Airlines has achieved a full year of profitability for the first time since 2019.
The airline had a total revenue in 2022 of $49 billion, an increase of 7 percent over 2019, and a total net income of $803 million — all while flying 8.7 percent less capacity. And that is despite a $1.9 billion pretax loss in the first quarter.
It was also the best fourth quarter the company has ever had, with a total revenue of $13.2 billion, an increase of 16.6 percent from in 2019.
Airline executives shared the details during a quarterly earnings call Thursday morning.
“Key to our success has been sizing our airline for the resources we have available and the operating conditions we expect to encounter. And we will continue to do that going forward,” said American CEO Robert Isom.
Now, post-holiday bookings are the strongest they have ever been, said Robert Isom, CEO of American. Demand for domestic and short-haul international flights is leading that business, and international flights are expected to increase this year.
Even with the financial uptick, American is still working against multiple post-pandemic issues — including a workforce shortage, supplier constraints, and higher expenses — that will affect growth and operations over the next year.
