While the losses of US Airways worsened in the first quarter, as revenues also decreased slightly, the CEO expressed confidence that the airline is in a good position for the future in light of the uncertainty that the economy faces, expanding, the aviation industry.
The US Airlines, which had no profitable net in the first quarter since 2019, recorded a net loss of $ 473 million, and it is the worst net result of its main competitors in the United States, with the Delta Airlines only and United Airlines is the only profitable airline in the country so far.
In a good position
Robert Isom, CEO (CEO of US Airlines, stated that the airline has taken over the past few years, including its fleet refreshments, cost management, and the promotion of the public budget, has developed the transport company well for the uncertainty that the aviation industry is currently facing.
In the first quarter, US Airlines revenues decreased by 0.2 % on an annual basis (YOY) to $ 12.5 billion, with operating expenses increasing by 2.1 % on an annual basis to $ 12.8 billion. The costs of the airline can be higher if not for fuel and related taxes by 13.2 % year on year to $ 2.5 billion, which consists of 19.5 % of the total costs of the airline. As such, its operational loss amounted to $ 270 million (the first quarter of 2024: a two -dollar operating profit), and the net loss of the company was 473 million dollars. At the end of the period, the company had $ 10.8 billion of liquidity, including cash, short -term investments, unparalleled credit, roundabout and other installations, with debt in the first quarter of $ 1.2 billion. Its debts in the long term at the end of the first quarter amounted to 24.7 billion dollars, with total obligations of obligations of $ 41 billion.
“The flexibility of the American Airlines team, in addition to the investments we have made to distinguish between our network, our products and customers, gives us great confidence in our ability to move in the current environment and provide strong results in the long run.”
Less passengers on low capacity
During this quarter, the ability of the airline, which was measured by available seat miles (ASM), was 0.9 % less, which led to the fact that the airline carrying 56.3 million passengers, or 1.9 % lower than Q1 2024. The loading factors also decreased, with the presence of American Airlines, on average, 80.6 % during the three -Monthene period (Q1024: 81.5 %).
The bright point was the revenue of the transport company, which increased to 20.21 ¢ (Q1 2024: 19.94 ¢), while the ASM 16.30 passenger revenue was slightly higher compared to the character Q1 2024 of 16.25 ¢. The total revenue for each ASM (Tramm) was 17.95 ¢, by 0.7 % on an annual basis.
There was an interesting shift in the number of flights, which are divided between its regional departure and the main lines. While the main departure was slightly less – 278,000, by 4.3 % annually – its regional flights continued to bridge the gap because it grew 14.3 % year on an annual basis to 250,000. The total departure was slightly higher at 528,000 in the first quarter. At the end of the quarter, US Airlines had 985 main aircraft and 567 regional aircraft, compared to 967 and 550 aircraft in the first quarter of 2024, respectively.
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Positive results in Q2
However, despite the weak performance in the first quarter, which ended with the uncertainty that is still moderate, such as Donald Trump, the President of the United States, did not announce 10 % global tariffs as well as the individual definitions that were subsequently arrested until July (except for Chinese imports), US Airlines expects their operation margin to be positive.
In its directives, the carrier determines that its capacity, measuring in ASMS, will be 2 % higher to 4 % compared to the Q2 2024, with revenue either 2 % less or 1 % yoy. The cost should increase per ASM, with the exception of fuel and net special elements (CASM-EX), by 3 % to 5 %. The modified operating margin should range between 6 % and 8.5 %, and the modified profits for each diluted arrow (EPS) should range from $ 0.50 to $ 1.
By announcing the results of the American Airlines, the airline joined the other three members of the Big 4 Carriers Big 4, which also published the results of the first quarter. Of the four, two were profitable, namely Delta Air Lines (net profit profit: 240 million dollars) and United Airways (the net profit of the first quarter: $ 387 million)while Southern West Airlines (net loss: 149 million dollars) It was also a loss.