2024 AIRLINE EARNINGS SHOW LARGE GAP
2024 emerged as a remarkable year for airlines, showcasing significant profitability, as evidenced by the recent earnings reports from two of the industry's major players. Delta and United announced outstanding earnings, highlighting record profits for the fourth quarter and optimistic projections for 2025. In contrast, American Airlines reported earnings that, while surpassing analysts' expectations, fell considerably short compared to its competitors. The full-year earnings figures are as follows:
Delta – Revenue of $61.6 billion; Net income of $3.4 billion
United – Revenue of $57 billion; Net income of $3.1 billion
American – Revenue of $54.2 billion; Net income of $846 million
These figures indicate robust revenue across all three airlines, yet American's profit margins are notably lower. Various theories exist regarding the reasons for these disparities, but a significant factor appears to be the difference in wide-body international operations featuring premium seating. American Airlines phased out many of its wide-body jets during the COVID pandemic, whereas Delta and United retained these aircraft, capitalizing on lucrative international routes. While there are other operational distinctions among the major airlines, this particular difference starkly illustrates the divide in profitability for 2024.
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