American Airlines Struggles with Profit Despite Record Passenger Numbers

Lower ticket prices and a failed sales strategy lead to reduced earnings forecasts for 2024.

American Airlines reported record revenue of $14.3 billion in Q2 but missed profit expectations.
Net income reached $717 million, yet the company slashed its full-year earnings forecast significantly.
An industry-wide oversupply of flights has forced American to cut fares, impacting profitability.
The airline is reworking its sales strategy after backlash from travel agents and business clients.
Despite challenges, American Airlines reduced its total debt by nearly $680 million in the second quarter.