American Airlines is on other side of industry’s biggest crisis, CEO says

American Airlines reported record-breaking earnings in its quarterly earnings report Thursday.

The Fort Worth-based airline generated more than $12.2 billion in revenue in the first quarter of 2023 and experienced first-quarter profits for the first time in four years.

CEO Robert Isom said the airline is off to a “fantastic” start for the year on a conference call to discuss earnings results.

“This year, we remain focused on reliability, profitability, strengthening our balance sheet and holding ourselves accountable along the way,” Isom said.

Now more than three years since the start of the COVID-19 pandemic, airline travelers are returning in droves. American saw a 7.5% increase in average load factor, or the percentage of available seats sold, in comparison to the same quarter of last year. More than 476,000 flights took place in the first quarter, and flights were 80% full on average.

CFO Devon May said the company expects to take delivery of 23 new aircraft this year and reactivate nine Boeing 737s.

“We have made significant investments in our fleet over the past decade and these investments are paying off,” May told analysts.

American made progress on previously outlined plans to pay off $15 billion in total debt by 2025. The airline reduced debt by more than $850 million in the first quarter.

CEO Isom said the airline industry is in an excellent position after the pandemic as travel patterns have evolved. The industry also faces strong demand for travel this summer.

“Our industry has been through the biggest crisis in its history, and it’s now on the other side,” Isom said.

In anticipation of increased demand for summer travel, American announced expanded services to two new international destinations, Rome and Dublin, on Tuesday. The carrier will operate 19 international flight services this summer to cities in Europe, Asia and South America.