American Airlines’ cargo revenue up 5% in Q3

American Airlines Group on Oct. 24 reported $202 million in cargo revenue for the third quarter, an increase of 5% from Q3 2023. The carrier group also reported record Q3 operating revenue of $13.6 billion, up 1.2% year over year. This quarter marks ongoing YoY growth in the cargo segment. In Q2, American Airlines reported $195 million in cargo revenue , a decrease of 1.3% YoY. [caption id="attachment_57146353" align="aligncenter" width="1920"] (Courtesy/American Airlines)[/caption] American’s cargo division moved more than 7.3 tonnes of “critical supplies” to regions impacted by significant weather events in Q3, including hurricanes Helene and Milton, Chief Executive Robert Isom said on the company’s Oct. 24 earnings call. American earnings were reduced by about $90 million due to the hurricanes and the CrowdStrike outage, Isom said. On July 19, a CrowdStrike outage affected Windows hosts, including American, causing numerous flight cancellations and delays. American Airlines reported a $256 million operating loss before taxes, an improvement from Q3 2023, when it reported an operating loss before taxes of $690 million. The carrier also reported in Q3: Net loss of $149 million, compared with a net loss of $545 million in Q3 2023; Diluted loss per share of 23 cents, compared with 83 cents in Q3 2023; 542 million cargo ton miles, up 10.5% YoY; and Cargo yield per ton mile of 37 cents, down 5% YoY. Shares of American Airlines ( NASDAQ: AAL ) were up 2.9 % from market open to $13.15 as of market close today. The company has a market capitalization of $8.6 billion. United’s cargo revenue up 25% United Airlines last week reported $417 million in Q3 cargo revenue, up 25.2% YoY. The carrier’s total operating revenue was up 2.5% YoY to $14.8 billion. The results were an improvement from Q2, when United reported $414 million in cargo revenue , up 14.4% YoY. [caption id="attachment_415049" align="aligncenter" width="1920"] A United 777-300ER takes off. (Courtesy/United Airlines)[/caption] The carrier reported $1.6 billion in operating income, down 10% YoY. United also reported in Q3: Income before taxes of $1.3 billion, down 13.4% YoY; Net income of $965 million, down 15.1% YoY; Diluted earnings per share of $2.90, down 15.2% YoY; and 881 million cargo revenue ton miles, up 15% YoY. In Q3, United took delivery of twenty passenger aircraft — seventeen 737 MAXs and three A321neos — Chief Financial Officer Mike Leskinen said on an Oct. 16 earnings call. United expects, even with delays, to take delivery of nineteen narrowbody aircraft and three widebody aircraft in Q4, Leskinen said. While delays from Boeing are lengthening as the strike drags on , United Chief Executive Scott Kirby expressed confidence in Boeing’s recovery and future during the earnings call. He said Boeing’s long-term plan is encouraging. This summer, United became the first carrier to purchase sustainable aviation fuel (SAF) at Chicago O’Hare International Airport (ORD). SAF producer Neste will provide up to 1 million gallons of SAF to United at ORD in 2024, according to the carrier. The first supply arrived in August. Also, in partnership with United in September, the San Francisco 49ers became the first NFL team to purchase SAF . Shares of United Airlines ( NASDAQ: UAL ) were up 0.17 % from market open to $74.64 as of market close today. United has a market capitalization of $24.4 billion. Southwest’s cargo revenue down 2.3% Southwest Airlines reported $43 million in Q3 cargo revenue on Oct. 24, down 2.3% YoY. The carrier also reported record Q3 operating revenue of $6.9 billion, up 5.3% YoY. In comparison, Southwest’s cargo revenue was down 4.3% YoY to $45 million in Q2. [caption id="attachment_14785" align="aligncenter" width="1920"] Cargo is loaded onto a Southwest flight at DAL. (Courtesy/Southwest Airlines)[/caption] Southwest’s Q3 operating income was $38 million, down 67.5% YoY. The carrier also reported in Q3: Income before taxes of $89 million, down 62.4% YoY; and Diluted net income per share of 11 cents, down 64.5% YoY. Like American and United, Southwest offers belly cargo capacity. In Q3, Southwest received nine 737 Max 8s and retired fifteen aircraft — fourteen 737-700 and one 737-800 — ending the quarter with 811 passenger aircraft, according to the earnings report. Southwest initially expected seventy-nine Boeing aircraft deliveries in 2024, but Boeing notified the carrier in March that it would only receive forty-six, Southwest Chief Financial Officer Tammy Romo said on the Oct. 24 earnings call. Following this, Southwest cut its expectations to twenty Boeing deliveries , of which Southwest has already received nineteen. Shares of Southwest Airlines ( NYSE: LUV ) were up 1.4 % from market open to $29.43 as of market close today. Southwest has a market capitalization of $17.6 billion.

American Airlines’ cargo revenue up 5% in Q3

United’s cargo revenue up 25%; Southwest’s cargo revenue down 2%

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