AA Cargo revenue climbs 1.1% in Q1

American Airlines reported $189 million in cargo revenue for the first quarter of 2025, an increase of 1.1% year over year. 

The carrier reported overall operating revenue of $12.6 billion, down 0.2% YoY, which it attributed to economic uncertainty that lowered travel demand, and tragedies, Chief Executive Robert Isom said on the company’s earnings call on April 24. The tragedies referenced included the California wildfires and the American Eagle Flight 5342 mid-air collision with a U.S. Army helicopter on Jan. 29 that killed sixty-seven people. 

The airline’s Q1 cargo and overall revenues marked a sizable decrease from the previous quarter. American reported $220 million in cargo revenue for Q4 2024, up 10.5% YoY, and $13.7 billion in overall operating revenue, up 4.6% YoY.  

American Airlines reported an operating loss of $270 million, down from Q1 2024’s operating profit of $7 million. The carrier also reported in Q1: 

• A loss before taxes of $648 million, down from Q1 2024’s EBIT loss of $413 million; 
• Diluted loss per share of 72 cents, down from Q1 2024’s diluted loss per share of 48 cents; 
• 483 million cargo ton miles, down 0.2% YoY; and 
• Cargo yield per ton mile of 39 cents, up 1.3% YoY. 

AA Cargo, the cargo arm of the carrier, does not operate freighters, relying on bellyspace on passenger flights. American Airlines expects to take delivery of forty to fifty new passenger aircraft this year, Chief Financial Officer Devon May said on the earnings call. 

The carrier expects Q2 revenue to be between down 2% and up 1% YoY, May said.  

“The economic uncertainty in the market has pressured demand and impacted American’s first-quarter results and second-quarter outlook,” Isom said. “Given this macro environment, we’re withdrawing our full-year outlook.” 

Shares of American Airlines (NASDAQ: AAL) were up 3.11% from market open to $9.61 as of market close April 24, the day of the earnings call. Shares were up 1.46% from market open to $9.75 as of market close today. The company has a market capitalization of $6.4 billion.  

Hawaiian took delivery of 2 more Amazon A330P2Fs   

Alaska Air Group, parent company of Alaska Airlines and Hawaiian Airlines following their $1.9 billion merger in September 2024, reported $122 million in “cargo and other revenue” for Q1. A YoY comparison is not instructive as Alaska Air Group did not include Hawaiian as a subsidiary in Q1 2024. 

However, Alaska Air Group’s cargo revenue was $64 million in Q1 2024 and Hawaiian Airlines’ former parent company Hawaiian Holdings’ “other” revenue, which includes cargo, was $62 million. 

“Our cargo operations are ramping to full capacity,” President and CEO  Ben Minicucci said during the company’s earnings call on April 24. “We took delivery of two more Amazon A330 freighters for a total of eight.” 

Hawaiian signed a deal in 2022 to operate ten converted A330 freighters for Amazon on a CMI basis. Thus far, Hawaiian is flying eight A330-300P2Fs (1902, 1863, 1865, 1874, 1081, 1071, 1226 and 1245) for Amazon. Two additional A330-300P2Fs (1205 and 1167) have yet to enter service. 

Alaska Airlines is the only scheduled passenger airline in the United States to also operate its own freighters, flying two 737-800BCFs (35681 and 35682) and three 737-700BDSFs (30792, 30793 and 30794). 

The carrier group reported $3.1 billion in total operating revenue in Q1. During the same period last year, Alaska Air Group reported $2.2 billion in operating revenue and Hawaiian Holdings reported $645.6 million.  

Alaska Air Group reported an operating loss of $197 million. It also reported in Q1: 

• A loss before taxes of $233 million; and 
• A diluted loss per share of $1.35, compared with a diluted loss per share of $1.05 in Q1 2024. 

During Q1, Alaska Airlines and Hawaiian Airlines co-located their air cargo operations in Hawaii at: 

• Honolulu (HNL); 
• Kona (KOA);  
• Lihue (LIH); and  
• Kahului (OGG). 

A unified cargo booking system allows customers to book shipments across both networks, the earnings release said. 

Shares of Alaska Air Group (NYSE: ALK) were down 9.95% from market open to $41.52 as of market close April 24, the day of the earnings call. Shares were up 0.96% from market open to $41.91 as of market close today. The company has a market capitalization of $5.2 billion. 

Southwest posts record Q1 operating revenue 

Southwest Airlines reported $41 million in cargo revenue in Q1, down 2.4% YoY. However, the company reported a record Q1 operating revenue of $6.4 billion, up 1.6%. 

Southwest, which does not operate freighters, received eleven 737-8s in Q1 and retired fourteen aircraft — twelve 737-700s and two 737-800s — ending the quarter with 800 aircraft. The carrier anticipates retiring about fifty aircraft this year, Chief Financial Officer Tom Doxey said on the company’s April 24 earnings call. 

The carrier reported an operating loss of $223 million, an improvement from Q1 2024’s operating loss of $393 million. Southwest also reported in Q1: 

• A loss before taxes of $192 million, up from Q1 2024’s loss before taxes of $298 million; and 
• A diluted loss per share of 26 cents, up from Q1 2024’s diluted loss per share of 39 cents. 

“Amid the current macroeconomic uncertainty, it is very difficult to confidently forecast given recent and short-lived trends,” President and CEO Bob Jordan said on the earnings call. “Given this environment, we are not reiterating our full-year 2025 or our full-year 2026 EBIT guides.” 

Shares of Southwest Airlines (NYSE: LUV) were up 3.61% from market open to $26.44 as of market close April 24, the day of the earnings call. Shares were up 0.15% from market open to $26.50 as of market close today. Southwest has a market capitalization of $15 billion.   

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