by Donald Wood
on April 27, 2023 Last updated: 10:30 AM ET, Thu April 27, 2023
The largest airlines in the United States reported that their
first quarter financial results indicate strong pent-up travel demand and
higher prices would result in a more positive outlook for the remainder of
2023.American Airlines forecasted that second-quarter profit would
surpass estimates as demand stays strong despite an uncertain economy. The
company reported first-quarter net income of $10 million and record revenue of
$12.2 billion, representing a 37 percent jump from 2022.
The carrier generated a record operating cash flow of $3.3
billion and a record free cash flow of $3 billion in the first quarter. American
CEO Robert Isom said the company would “remain focused on reliability,
profitability and strengthening the balance sheet” for the remainder of 2023.As for Delta, the first quarter of 2023 saw operating
revenue hit $12.8 billion, operating cash flow top $2.2 billion and payments on
debt and finance lease obligations reach $1.2 billion.
The airline also unveiled June quarter and full-year outlooks,
with total revenue expected to increase by 15-17 percent compared to the same
periods in 2022 and operating margin forecast to improve by 14-16 percent.“With solid March quarter profitability and a strong outlook
for the June quarter, we are confident in our full-year guidance for revenue
growth of 15 to 20 percent year over year, earnings of $5 to $6 per share and
free cash flow of over $2 billion,” Delta CEO Ed Bastian said.
United Airlines grew total operating revenue by 51.1 percent
compared to 2022 and total revenue per available seat mile (TRASM) by 22.5
percent. Cost per available seat mile (CASM) also increased by four percent.Strong operational reliability produced available seat miles
(ASMs) 23.4 percent higher than last year, while company officials remained
confident that 2023 would continue to yield positive financial results.While most carriers thrived, Southwest Airlines reported a
wider-than-expected first-quarter loss due to a “pre-tax charge related to mass
cancellations in December and flagged 20 fewer deliveries of the MAX jets this
year from Boeing,” according to Reuters.com.
Despite the issues, the carrier forecast “solid
profits” in the current quarter on strong summer bookings despite high
labor and fuel expenses still weighing on the industry. CEO Bob Jordan said “demand
for domestic air travel remains strong.”For the latest travel news, updates and deals, subscribe
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Appeared first on: travelpulse.com
