American Airlines reports $312M loss as labor expenses climb with new contracts

American Airlines reported a $312 million first-quarter loss for 2024 on Thursday.

The airline, which had to adjust for costs associated with new labor contracts, took $86 million in charges for one-time events including expenses from new labor deals. American’s operating expenses went up to almost 7%, including an 18% rise in salaries and other expenses.

The first quarter, however, was not inclusive of the cost impact of American’s new pilot agreement. The agreement raised pilot pay by more than 40% over four years.

American reported first-quarter revenue of $12.6 billion, up 3.2% from a year earlier. Of that figure, $11.5 billion was passenger revenue, $187 million in cargo revenue and $925 million was for other revenues, like American’s Aadvantage card program and airport lounges. “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,” said Robert Isom, CEO of American in a release.

American, like other major airlines, is feeling the heat of plane manufacturer Boeing Co.’s issues in delivering new aircraft orders. The delay in deliveries follows a series of safety issues plaguing the airplane manufacturer, such as January’s Boeing 737 Max 9 blowout that left a gaping hole in the side of an Alaska Airlines fuselage. The incident continues to make headlines, and the Federal Aviation Administration opened a formal investigation into Boeing.