American Airlines closed 2024 with record-breaking revenues of $54.2 billion, marking a modest increase from the previous year. However, despite achieving strong operational performance, the airline’s profitability lagged behind its main competitors, Delta Air Lines and United Airlines.
The airline faced rising operating expenses, including higher salaries and maintenance costs, which impacted its net income. While American Airlines remained profitable, it ended the year with a net income of $846 million, significantly lower than Delta ($3.9 billion) and United ($3.1 billion).
Let’s take a closer look at American Airlines’ financial performance, key achievements, and future outlook for 2025.
American Airlines’ 2024 Financial Performance
Revenue Growth in 2024
American Airlines reported:
- Full-year revenue: $54.2 billion (up from $52.7 billion in 2023)
- Q4 2024 revenue: $13.6 billion (compared to $13 billion in Q4 2023)
What drove this revenue increase?
📌 Capacity adjustments – Optimized flight schedules to match demand
📌 Strong passenger demand – Carried 248.7 million passengers, a 7.3% increase YoY
📌 Improved load factor – Increased from 83.5% to 84.9%, meaning fuller flights
CEO Robert Isom highlighted that American Airlines remains well-positioned for future growth, thanks to its network strength, loyalty programs, and operational reliability.
Operational Highlights: Record Passenger Volume and Strong Performance
Despite challenges such as extreme weather disruptions, American Airlines delivered strong operational performance in 2024:
✅ Second-best completion rate since the American-US Airways merger
✅ Second in on-time departures among the four largest U.S. airlines (Delta, United, Southwest)
✅ Largest passenger volume in company history
The airline credited its employees for maintaining resilience and efficiency in operations.
Key Challenges: Rising Costs Impact Profitability
While revenue and passenger numbers grew, rising expenses weighed down profitability.
📌 Operating income: $2.6 billion (down 13.9% YoY)
📌 Net income: $846 million (significantly lower than Delta and United)
Cost Breakdown
- Salaries & wages: Up 9.9% to $16 billion
- Maintenance costs: Up 16.2% to $3.7 billion
- Fuel expenses: Down 6.8% YoY, but not enough to offset rising costs elsewhere
While fuel prices decreased, labor and maintenance expenses surged, making it difficult for the airline to improve its profit margins.
Loyalty Program Expansion: Citi Partnership & Increased Revenue
American Airlines continues to expand its loyalty program and co-branded credit card revenue, which remains a major source of non-flight income.
💳 2024 revenue from loyalty and partnerships: $6.1 billion
💳 New Citi partnership: Announced in December 2024, making Citi the exclusive issuer of American’s AAdvantage credit cards in the U.S. starting in 2026
The airline expects this expanded Citi deal to enhance customer engagement and boost non-flight revenues in the coming years.
Comparison: How American Airlines Stacks Up Against Competitors
| Airline | 2024 Revenue | Net Profit | Passenger Volume |
|---|---|---|---|
| American Airlines | $54.2 billion | $846 million | 248.7 million |
| Delta Air Lines | $60 billion+ | $3.9 billion | N/A |
| United Airlines | $55+ billion | $3.1 billion | N/A |
| Alaska Airlines | $X billion | $395 million | N/A |
Although American Airlines achieved record revenue, it significantly underperformed in profitability compared to Delta and United.
What’s causing the gap?
📌 Higher operating costs – Increasing salaries and maintenance expenses
📌 Lower profit margins – Despite high revenue, profitability remains a concern
📌 Competitive disadvantage – Delta and United have stronger financial performance and cost efficiency
Future Outlook: What’s Next for American Airlines in 2025?
1. Focus on Cost Control & Profitability
To close the profit gap with competitors, American Airlines will focus on:
✔️ Reducing operational costs – Managing maintenance and labor expenses
✔️ Optimizing efficiency – Streamlining flight schedules and improving utilization
2. Strengthening Loyalty & Credit Card Revenue
- The Citi-AAdvantage partnership (2026 launch) is expected to boost loyalty revenue.
- More co-branded credit card sign-ups could drive higher non-flight earnings.
3. Competitive Positioning & Market Strategy
- Recovering indirect sales revenue – After a failed direct booking shift, American Airlines is rebuilding corporate & travel agency partnerships.
- Strengthening customer experience – Investing in fleet modernization and service quality.
CEO Robert Isom remains optimistic, stating:
“American remains well-positioned because of the strength of our network, loyalty programs, fleet, and operational reliability.”
A Record Year, But Challenges Remain
✅ Record revenue ($54.2B) and passenger volume (248.7M)
❌ Lower profitability ($846M) compared to Delta ($3.9B) and United ($3.1B)
💡 Strategic focus on loyalty programs, cost control, and operational improvements
American Airlines achieved strong performance in 2024, but rising costs and competitive pressure mean that 2025 will be a crucial year for improving profitability and market positioning.
Can American Airlines close the profitability gap with Delta and United in 2025? Only time will tell.
