American Airlines reported a loss of $312 million in the first quarter of 2024 despite its efforts to combat rising costs.
Operational costs increased by 8% as a result of raising employee wages by 18%. However, even when these one-time line items were adjusted, American Airlines still lost $226 million, or about 34 cents per share. The company also blamed “air traffic control challenges and significant weather events.”
“While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets,” CEO Robert Isom said in an earnings release.
The company still reported an increased revenue of 3.1%, which added up to over $12.5 billion. This was a record for American.
Last year’s first quarter saw a profit of 2 cents per share, or $10 million.
