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. Â
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