American Airlines reported a net loss in the first quarter of 2024, falling short of its previous year's profit. However, the airline industry giant managed to exceed analyst expectations with its bullish forecast for the current quarter.

American Airlines posted a net loss of $312 million, translating to 48 cents per share, for the first quarter. This stands in stark contrast to the $10 million profit, or 2 cents per share, reported in the same period of 2023. Even after adjusting for one-time expenses related to new labor agreements, the airline still incurred a loss of $226 million, or 34 cents per share. Despite the loss, American Airlines managed to generate $12.57 billion in revenue, reflecting a 3.1% increase compared to the previous year. However, operating expenses rose by nearly 7%, driven primarily by an 18% increase in salaries and related costs.

While the Q1 results might raise concerns, American Airlines offered a more optimistic outlook for the current quarter. The airline anticipates adjusted earnings per share to fall within the range of $1.15 to $1.45, exceeding the $1.18 average projected by analysts. The company also reiterated its full-year earnings forecast of $2.25 to $3.25 per share.

CEO Robert Isom expressed confidence in the company's ability to achieve its financial targets, stating, "While we aren't satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets." Capacity Limitations Due to Boeing Delay. American Airlines, similar to other major carriers like Southwest, United, and Alaska, is grappling with the impact of Boeing's recent quality control and safety issues. These issues have resulted in a projected delivery shortfall of seven aircraft for American Airlines compared to earlier estimates. CEO Isom downplayed the potential impact of these delays on the company's performance.

However, Isom did not shy away from addressing Boeing directly, stating in a CNBC interview, "My message is Boeing hasn't changed since the last time we talked. Get your act together. Deliver." American Airlines expects its second-quarter capacity to increase by 7% to 9%, while unit revenues are projected to decline by 1% to 3% year-over-year.

Despite the Q1 loss, American Airlines' positive Q2 forecast injects a dose of optimism into the airline's near future. The company's ability to navigate rising operational costs and overcome limitations caused by Boeing delays will be crucial factors in determining its overall success in 2024.