AAL Q2 2024 Earnings

Call Details

• Call Title: American Airlines Group, Inc. Q2 2024 Earnings Call
• Date: July 25, 2024 at 12:30 PM UTC
• Management Team:
  • Scott Long (Head of Investor Relations)
  • Robert Isom (Chief Executive Officer)
  • Devin May (Chief Financial Officer)
  • Steve Johnson (Vice Chair)
  • David Seymour (Chief Operating Officer)

Call Summary

Financial Performance

• Reported an adjusted pre-tax profit of $1B in Q2 2024.
• Reported adjusted earnings per diluted share of $1.09 for Q2 2024.
• Generated record quarterly revenue of $14.3B in Q2, up 2% year-over-year.
• Reported unit revenue down 5.6% year-over-year on 8% more capacity in Q2.
• Domestic PRASM was down 6.4% year-over-year in Q2.
• Reported an adjusted EBITDA margin of 15.7% and an adjusted operating margin of 9.7% in Q2.
• Reported unit cost excluding net special items and fuel down 0.1% year-over-year in Q2.

Guidance

• Now plan to grow capacity by approximately 3.5% in the second half of 2024.
• Expect third quarter 2024 capacity growth of approximately 3% with August up ~2% and September up less than 1% year-over-year.
• Expect third quarter 2024 adjusted operating margin of 2% to 4% and approximately break even adjusted EPS.
• Expect full-year 2024 TRASM to be down 3% to 5% versus 2023.
• Now expect full-year 2024 operating margin of 3.5% to 5.5%.
• At the midpoint of full-year guidance, anticipate adjusted earnings per diluted share of approximately $1 and free cash flow of approximately $500M.
• Forecasts assume fuel of $2.55 to $2.75 per gallon for Q3 and $2.65 to $2.75 per gallon for full year 2024.