DALLAS — North Texas-based airlines Southwest and American released their first-quarter earnings reports Thursday morning, and both companies reported losses.
For American, the Fort Worth-based airline posted a record first-quarter revenue of $12.6 billion, but still posted a net loss of $312 million.
One of the factors impacting American's bottom line was a significant increase in the cost of fuel, CEO Robert Isom said in a press release. But American officials in the release said the company "is running the best operation in its history," citing a best-ever first-quarter completion factor and improved handling of baggage.
“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," Isom said. "Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet.”
For Southwest, the Dallas-based airline posted a $231 million loss on revenues of $6.3 billion. Southwest officials pointed to issues with Boeing delivery delays.
"While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March," Southwest CEO Bob Jordan said in a press release. "We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations."
Southwest officials in March said the company plans to reduce capacity and reevaluate its full-year financial outlook because of fewer expected aircraft deliveries from it supplier, Boeing.
Southwest Airlines said in a regulatory filing that Boeing expects to deliver 46 737-8 planes this year. The company previously anticipated 79 737 Max aircraft deliveries, which included 58 737-8 planes.
Jordan in the earnings release Thursday called the delivery delays "significant challenges for 2024 and 2025."
"We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our Customers," Jordan said.