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American Airlines revealed a net loss of $473 million in the first quarter, marking the most significant loss among its main competitors in the United States. Despite the setback, Robert Isom, CEO of American Airlines, remains optimistic about the company's long-term prospects. Isom credited the airline's fleet refresh, cost management, and balance sheet improvements as crucial factors in navigating the current economic uncertainties impacting the airline industry.
During the first quarter, American Airlines reported a slight revenue decline of 0.2% year-on-year, totaling $12.5 billion, while operating expenses rose by 2.1% to $12.8 billion. The airline's fuel and related taxes decreased by 13.2%, making up 19.5% of total costs. This resulted in an operating loss of $270 million, a significant contrast to the $7 million operating profit achieved in the same period last year. By the end of the quarter, American Airlines maintained $10.8 billion in liquidity, including cash and investments, despite paying down $1.2 billion in Q1 debt.
"The resiliency of the American Airlines team, combined with the investments we have made to differentiate our network, product and customer experience, give us extreme confidence in our ability to navigate the current environment and deliver strong results for the long term," Isom stated.
