Southwest Airlines is reporting a loss, and American expects to start the new year with a loss
Some major U.S. airlines are struggling to cover higher costs for labor and other expenses
By AP News
Published - Jan 25, 2024, 08:09 AM ET
Last Updated - Jan 25, 2024, 08:09 AM EST
DALLAS (AP) — Fourth-quarter profit fell sharply at American Airlines, and the carrier predicted it would lose money in early 2024, while Southwest Airlines posted a loss, as both carriers struggled to cover rising labor costs.
Southwest also said Thursday that it expects to receive fewer new planes than it expected this year because of ongoing production problems at Boeing.
American said Thursday that it earned $19 million in the fourth quarter, down from $803 million a year earlier. Excluding one-time items, mostly contract-ratification bonuses for pilots, the airline said adjusted profit was 29 cents per share.
Analysts expected American Airlines Group Inc. to earn 11 cents per share, according to a FactSet survey.
