American Airlines Group Inc. provides air transport services for passengers and cargo such as freight and mail. Its wholly owned subsidiary American Airlines Inc. is a global network air carrier. The company offers daily flights to more than 350 destinations in over 60 countries around the world.
The source of its greatest amount of revenue is the Passenger business segment.
The company also provides regional service in the United States through American Eagle, whose operations include Envoy Air, PSA Airlines, and Piedmont Airlines, as well as contracted third-party carriers Republic Airways, SkyWest Airlines, and Air Wisconsin Airlines.
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American’s stated purpose is “to care for people on life’s journey” and its focus is on “social good, global health and well-being, and our military heroes.”
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KEY TAKEAWAYS
American Airlines Group is a holding company that provides global and regional air transport services for passengers and cargo.
The company reports revenues in three business segments: Passenger, Cargo, and Other.
Passenger services account for almost 100% of the company’s revenues.
Competitors include Delta Air Lines and United Airlines.
In 2023, the company announced a 10-year, long-term use and lease agreement with Dallas Fort Worth airport for the construction and improvement of a number of terminals.
American Airlines’ Industry
American Airlines Group (AAL) operates in the Air Services industry within the Industrial Goods sector.
American Airlines Group Inc. provides air transport services for passengers and cargo such as freight and mail. Its wholly owned subsidiary American Airlines Inc. is a global network air carrier. The company offers daily flights to more than 350 destinations in over 60 countries around the world.
1
The source of its greatest amount of revenue is the Passenger business segment.
The company also provides regional service in the United States through American Eagle, whose operations include Envoy Air, PSA Airlines, and Piedmont Airlines, as well as contracted third-party carriers Republic Airways, SkyWest Airlines, and Air Wisconsin Airlines.
1
American’s stated purpose is “to care for people on life’s journey” and its focus is on “social good, global health and well-being, and our military heroes.”
1
KEY TAKEAWAYS
American Airlines Group is a holding company that provides global and regional air transport services for passengers and cargo.
The company reports revenues in three business segments: Passenger, Cargo, and Other.
Passenger services account for almost 100% of the company’s revenues.
Competitors include Delta Air Lines and United Airlines.
In 2023, the company announced a 10-year, long-term use and lease agreement with Dallas Fort Worth airport for the construction and improvement of a number of terminals.
American Airlines’ Industry
American Airlines Group (AAL) operates in the Air Services industry within the Industrial Goods sector.
According to the company’s annual report for 2023, its primary business activity is its operation as a network air carrier. It offers scheduled flights for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.
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Domestic Competition
It faces competition for domestic service on price and for market share from well-known carriers such as:
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Alaska Airlines (ALK)
Allegiant Air (ALGT)
Delta Air Lines (DAL)
Frontier Airlines (ULCC)
Hawaiian Airlines (HA)
JetBlue (JBLU)
Southwest Airlines (LUV)
Spirit Airlines (SAVE)
United Airlines (UAL)
For its cargo business, it faces competition from all-cargo airlines, charter airlines, and ground and rail transportation.
International Competition
American also faces intense competition for its international service to Canada, Mexico, the Caribbean, Central and South America, Europe, Qatar, China, Japan, Korea, India, Australia, and New Zealand.
Success in the international market has required American to engage in marketing relationships, alliances, cooperation agreements and joint business agreements with foreign carriers to work with each other’s flights and route networks.
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LIVE
TABLE OF CONTENTS
COMPANY PROFILES INDUSTRIALS
How American Airlines Makes Money
Passenger services drive the company’s operating revenue
By NATHAN REIFF Updated July 29, 2024 11:32 AM EDT
Reviewed by ROBERT C. KELLY 11:32 AM EDT
American Airlines Group Inc. provides air transport services for passengers and cargo such as freight and mail. Its wholly owned subsidiary American Airlines Inc. is a global network air carrier. The company offers daily flights to more than 350 destinations in over 60 countries around the world.
1
The source of its greatest amount of revenue is the Passenger business segment.
The company also provides regional service in the United States through American Eagle, whose operations include Envoy Air, PSA Airlines, and Piedmont Airlines, as well as contracted third-party carriers Republic Airways, SkyWest Airlines, and Air Wisconsin Airlines.
1
American’s stated purpose is “to care for people on life’s journey” and its focus is on “social good, global health and well-being, and our military heroes.”
1
KEY TAKEAWAYS
American Airlines Group is a holding company that provides global and regional air transport services for passengers and cargo.
The company reports revenues in three business segments: Passenger, Cargo, and Other.
Passenger services account for almost 100% of the company’s revenues.
Competitors include Delta Air Lines and United Airlines.
In 2023, the company announced a 10-year, long-term use and lease agreement with Dallas Fort Worth airport for the construction and improvement of a number of terminals.
American Airlines’ Industry
American Airlines Group (AAL) operates in the Air Services industry within the Industrial Goods sector.
According to the company’s annual report for 2023, its primary business activity is its operation as a network air carrier. It offers scheduled flights for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.
2
Domestic Competition
It faces competition for domestic service on price and for market share from well-known carriers such as:
3
Alaska Airlines (ALK)
Allegiant Air (ALGT)
Delta Air Lines (DAL)
Frontier Airlines (ULCC)
Hawaiian Airlines (HA)
JetBlue (JBLU)
Southwest Airlines (LUV)
Spirit Airlines (SAVE)
United Airlines (UAL)
For its cargo business, it faces competition from all-cargo airlines, charter airlines, and ground and rail transportation.
International Competition
American also faces intense competition for its international service to Canada, Mexico, the Caribbean, Central and South America, Europe, Qatar, China, Japan, Korea, India, Australia, and New Zealand.
Success in the international market has required American to engage in marketing relationships, alliances, cooperation agreements and joint business agreements with foreign carriers to work with each other’s flights and route networks.
4
American Airlines is the twelfth largest airline in the world as measured by market cap.
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American Airlines’ Financials
As of May 2024, American Airlines’ market capitalization was $9.8 billion.
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American Airlines’ 2023 annual report provided the company’s financial results for the 2023 fiscal year (FY). Additionally, on April 25, 2024, the company announced financial results for the first quarter of 2024, ended March 31, 2024.
Operating Revenue
For FY 2023, total operating revenue was $52.78 billion, an increase of about 7.8% over the previous year’s $48.97 billion. For the first quarter of FY 2024, revenue was a record $12.6 billion, an increase of 3.1% over the previous year’s first quarter.
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LIVE
TABLE OF CONTENTS
COMPANY PROFILES INDUSTRIALS
How American Airlines Makes Money
Passenger services drive the company’s operating revenue
By NATHAN REIFF Updated July 29, 2024 11:32 AM EDT
Reviewed by ROBERT C. KELLY 11:32 AM EDT
American Airlines Group Inc. provides air transport services for passengers and cargo such as freight and mail. Its wholly owned subsidiary American Airlines Inc. is a global network air carrier. The company offers daily flights to more than 350 destinations in over 60 countries around the world.
1
The source of its greatest amount of revenue is the Passenger business segment.
The company also provides regional service in the United States through American Eagle, whose operations include Envoy Air, PSA Airlines, and Piedmont Airlines, as well as contracted third-party carriers Republic Airways, SkyWest Airlines, and Air Wisconsin Airlines.
1
American’s stated purpose is “to care for people on life’s journey” and its focus is on “social good, global health and well-being, and our military heroes.”
1
KEY TAKEAWAYS
American Airlines Group is a holding company that provides global and regional air transport services for passengers and cargo.
The company reports revenues in three business segments: Passenger, Cargo, and Other.
Passenger services account for almost 100% of the company’s revenues.
Competitors include Delta Air Lines and United Airlines.
In 2023, the company announced a 10-year, long-term use and lease agreement with Dallas Fort Worth airport for the construction and improvement of a number of terminals.
American Airlines’ Industry
American Airlines Group (AAL) operates in the Air Services industry within the Industrial Goods sector.
According to the company’s annual report for 2023, its primary business activity is its operation as a network air carrier. It offers scheduled flights for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.
2
Domestic Competition
It faces competition for domestic service on price and for market share from well-known carriers such as:
3
Alaska Airlines (ALK)
Allegiant Air (ALGT)
Delta Air Lines (DAL)
Frontier Airlines (ULCC)
Hawaiian Airlines (HA)
JetBlue (JBLU)
Southwest Airlines (LUV)
Spirit Airlines (SAVE)
United Airlines (UAL)
For its cargo business, it faces competition from all-cargo airlines, charter airlines, and ground and rail transportation.
International Competition
American also faces intense competition for its international service to Canada, Mexico, the Caribbean, Central and South America, Europe, Qatar, China, Japan, Korea, India, Australia, and New Zealand.
Success in the international market has required American to engage in marketing relationships, alliances, cooperation agreements and joint business agreements with foreign carriers to work with each other’s flights and route networks.
4
American Airlines is the twelfth largest airline in the world as measured by market cap.
5
American Airlines’ Financials
As of May 2024, American Airlines’ market capitalization was $9.8 billion.
6
American Airlines’ 2023 annual report provided the company’s financial results for the 2023 fiscal year (FY). Additionally, on April 25, 2024, the company announced financial results for the first quarter of 2024, ended March 31, 2024.
Operating Revenue
For FY 2023, total operating revenue was $52.78 billion, an increase of about 7.8% over the previous year’s $48.97 billion. For the first quarter of FY 2024, revenue was a record $12.6 billion, an increase of 3.1% over the previous year’s first quarter.
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Net Income
For FY 2023, net income was $822 million, a increase from the previous year’s $127 million. For the first quarter of FY 2024, net income was ($312) million, a loss from the previous year’s first quarter of $10 million.
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Revenue From Business Segments
American Airlines operates as a single business segment, maintaining a fleet of hundreds of aircraft that transport both passengers and cargo globally. However, it breaks down revenue figures by Passenger, Cargo, and Other segments.
Passenger
American Airlines counts as passenger revenue any revenue that comes from transportation on its main airline or subsidiary airlines, including baggage fees, in-flight services, and mileage credit redemptions from the company’s AAdvantage member loyalty service.
For FY 2023, the Passenger segment generated operating revenue of $48.51 billion, up 8.8% over the previous year end. That amount was about 92% of total revenue. For the first quarter of FY 2024, operating revenue was $11.45 billion, an increase of 3.2% over the same period the previous year.
LIVE
TABLE OF CONTENTS
COMPANY PROFILES INDUSTRIALS
How American Airlines Makes Money
Passenger services drive the company’s operating revenue
By NATHAN REIFF Updated July 29, 2024 11:32 AM EDT
Reviewed by ROBERT C. KELLY 11:32 AM EDT
American Airlines Group Inc. provides air transport services for passengers and cargo such as freight and mail. Its wholly owned subsidiary American Airlines Inc. is a global network air carrier. The company offers daily flights to more than 350 destinations in over 60 countries around the world.
1
The source of its greatest amount of revenue is the Passenger business segment.
The company also provides regional service in the United States through American Eagle, whose operations include Envoy Air, PSA Airlines, and Piedmont Airlines, as well as contracted third-party carriers Republic Airways, SkyWest Airlines, and Air Wisconsin Airlines.
1
American’s stated purpose is “to care for people on life’s journey” and its focus is on “social good, global health and well-being, and our military heroes.”
1
KEY TAKEAWAYS
American Airlines Group is a holding company that provides global and regional air transport services for passengers and cargo.
The company reports revenues in three business segments: Passenger, Cargo, and Other.
Passenger services account for almost 100% of the company’s revenues.
Competitors include Delta Air Lines and United Airlines.
In 2023, the company announced a 10-year, long-term use and lease agreement with Dallas Fort Worth airport for the construction and improvement of a number of terminals.
American Airlines’ Industry
American Airlines Group (AAL) operates in the Air Services industry within the Industrial Goods sector.
According to the company’s annual report for 2023, its primary business activity is its operation as a network air carrier. It offers scheduled flights for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.
2
Domestic Competition
It faces competition for domestic service on price and for market share from well-known carriers such as:
3
Alaska Airlines (ALK)
Allegiant Air (ALGT)
Delta Air Lines (DAL)
Frontier Airlines (ULCC)
Hawaiian Airlines (HA)
JetBlue (JBLU)
Southwest Airlines (LUV)
Spirit Airlines (SAVE)
United Airlines (UAL)
For its cargo business, it faces competition from all-cargo airlines, charter airlines, and ground and rail transportation.
International Competition
American also faces intense competition for its international service to Canada, Mexico, the Caribbean, Central and South America, Europe, Qatar, China, Japan, Korea, India, Australia, and New Zealand.
Success in the international market has required American to engage in marketing relationships, alliances, cooperation agreements and joint business agreements with foreign carriers to work with each other’s flights and route networks.
4
American Airlines is the twelfth largest airline in the world as measured by market cap.
5
American Airlines’ Financials
As of May 2024, American Airlines’ market capitalization was $9.8 billion.
6
American Airlines’ 2023 annual report provided the company’s financial results for the 2023 fiscal year (FY). Additionally, on April 25, 2024, the company announced financial results for the first quarter of 2024, ended March 31, 2024.
Operating Revenue
For FY 2023, total operating revenue was $52.78 billion, an increase of about 7.8% over the previous year’s $48.97 billion. For the first quarter of FY 2024, revenue was a record $12.6 billion, an increase of 3.1% over the previous year’s first quarter.
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Net Income
For FY 2023, net income was $822 million, a increase from the previous year’s $127 million. For the first quarter of FY 2024, net income was ($312) million, a loss from the previous year’s first quarter of $10 million.
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Revenue From Business Segments
American Airlines operates as a single business segment, maintaining a fleet of hundreds of aircraft that transport both passengers and cargo globally. However, it breaks down revenue figures by Passenger, Cargo, and Other segments.
Passenger
American Airlines counts as passenger revenue any revenue that comes from transportation on its main airline or subsidiary airlines, including baggage fees, in-flight services, and mileage credit redemptions from the company’s AAdvantage member loyalty service.
For FY 2023, the Passenger segment generated operating revenue of $48.51 billion, up 8.8% over the previous year end. That amount was about 92% of total revenue. For the first quarter of FY 2024, operating revenue was $11.45 billion, an increase of 3.2% over the same period the previous year.
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Passenger revenue represents the largest portion of American Airlines’ total operating revenue.
Cargo
Cargo revenue includes revenue generated from cargo transport of any kind by American Airlines. The company adapted to the 2019 pandemic by launching its first cargo-only flights since 1984.
For FY 2023, the Cargo segment generated $812 million in operating revenue, down 34.1% from the previous year. For the first quarter of FY 2024, operating revenue was $187 million, a loss of 16% over the same period the previous year.