American Airlines reported its second quarter 2024 results, with a drop in profitability of 46% year over year. CEO Robert Isom cited industry overcapacity and a new distribution strategy as the causes of the profit decline.Delta and United, which compete with American, also faced a glut of seats but reported significantly higher revenues and profits
continuing a trend from 2023.
American dramatically cut its outlook for the remainder of the year, with expected earnings between $0.70 and $1.30 per share, down from April’s estimates of $2.25 to $3.25 per share.Unit revenues are projected to drop 4.5% in the third quarter, in which American hopes to break even.
“We know we can do better and we will rise to meet this challenge,” said Robert Isom, CEO of American to investors during the carrier’s second-quarter financial results call.
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