American Airlines posted a $10m profit in Q1 as it ramped up flying and a jump in revenue outpaced higher costs. American’s revenue rose 37% in the first three months of the year to $12.19b, roughly in line with analyst estimates. Here’s how American Airlines performed in the first quarter compared with what Wall Street anticipated, based on an average of analysts’ estimates compiled by Refinitiv: Adjusted earnings per share: 5 cents vs. expected 5 cents; Total revenue: $12.19b vs. expected $12.20b; Revenue of $12.19b was 37% higher than the same period a year earlier. The carrier’s net income for the quarter of $10m, or 2 cents per share, marks a drastic improvement from the first quarter of 2022 when American lost $1.64bi, or $2.52 per share. Excluding charges associated with debt refinancing, American earned an adjusted 5 cents per share during the first quarter, in line with analysts’ expectations. For the second quarter of the year, American forecast adjusted per-share earnings of $1.20 to $1.40, at the high end of analysts’ expectations. The Fort Worth-based carrier expects revenue per available seat mile to come in 2% to 4% lower than last year on capacity up as much as 5.5%. American CEO Robert Isom said late aircraft deliveries from manufacturers are hindering the carrier’s growth.<br/>
oneworld
Finnair highlighted uncertainty about the durability of high passenger demand as it reported its third consecutive quarterly operating profit amid a strategic overhaul of the business. Outlining its first-quarter 2023 results on 27 April, the Oneworld carrier said the year had started on a “positive note”, with passenger demand and “well-progressed strategy implementation” driving its improved performance, alongside a unit-revenue boost from industry-wide capacity constraints. Finnair’s comparable operating profit of E1m for the January-March period compares with a loss of E133m in the same period of 2022, while its net profit of E3m represents a year-on-year swing from a loss of E213m. Revenue in the first quarter of €695 million was up 74% year on year. However, Finnair notes that its revenue and comparable operating performance are not expected to reach 2019 levels this year. Indeed, while Finnair chief executive Topi Manner says that “we are heading in the right direction”, he emphasises that the airline still faces “a long road to recovery”. Notably, post-summer passenger demand and outside uncertainties are factors to watch, he suggests. “We cannot expect that the current strong demand situation is a permanent one,” Manner states. “Our operating environment remains challenging in many respects, as the fuel price has remained high, inflation has not subsided, interest rates have risen, and the Russian airspace remains closed as the war in Ukraine continues.”<br/>