American Airlines Makes Remarkable Progress Towards $15 Billion Debt Reduction Goal by 2025
American Airlines has made significant strides in reducing its debt, marking a noteworthy achievement in its financial goals. The carrier has already reached almost two-thirds of its target to slash $15 billion in debt by 2025. In the second quarter of 2023, the company reported robust cash and free cash flow numbers.
Since its peak in mid-2021, American Airlines successfully reduced its debt by an impressive $9.4 billion. This remarkable feat was accompanied by strong financial results, with cash flow reaching $1.8 billion and free cash flow totaling $1.2 billion in Q2 2023. During the same quarter, the airline’s net income amounted to $1.3 billion, while the total revenue generated was $14 billion.
The first half of 2023 proved to be financially fruitful for American Airlines, with a net income of $1.348 billion. The airline showcased its profitability throughout the year, with even the first quarter’s net income reaching $10 million. Among the top 10 largest airlines in the United States (US) measured by Available Seat Miles (ASM) in Q1 2023, American Airlines emerged as one of only two carriers to finish the period profitably.
Robert Isom, the chief executive officer of American Airlines, praised the team’s hard work and the sustained demand for their product, which led to another fantastic quarter for the company. He emphasized that the airline’s operation is performing at historically strong levels, attributing record revenues in Q2 2023 to fleet modernization and a comprehensive global network.
Looking ahead, American Airlines remains committed to focusing on reliability, profitability, accountability, and strengthening their balance sheet for the rest of the year. The company aims to build upon the positive momentum gained in the first six months.
In Q2 2023, the airline’s ASM was 69.6 billion, with Revenue Passenger Miles (RPM) reaching 60.02 billion, a 4.4% increase compared to the same period in 2022. By the end of Q2 2023, the airline operated a total of 1,470 aircraft, with 944 being part of the mainline fleet.
American Airlines also takes pride in achieving its best-ever Q2 completion factor and controllable completion factor during Q2 2023, showcasing its commitment to reliability. Notably, this achievement excludes the impact of the COVID-19 pandemic on Q2 2020 and Q2 2021.
Throughout the three-month period of Q2 2023, American Airlines operated an impressive number of more than 500,000 flights, further solidifying its position in the aviation industry.