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This statistic highlights American Airline’s Passenger Revenue Per Average Seat Mile starting from the Q1 of 2016 to the latest quarter.
American Airlines Group Inc. is a holding company that engages in the operation of a network carrier through its principal wholly-owned subsidiary American Airlines. They offer services for both passengers and cargo. It is one of the world’s largest airlines when measured by fleet size. They serve in destinations all across the globe, but the majority of the revenue is generated from domestic operations. The passenger services account for almost 90% of the company’s revenue and the cargo amounts for just less than 2% of the total revenue. It operates through the following geographical segments: Department of Transportation Domestic; Department of Transportation Latin America; Department of Transportation Atlantic; and Department of Transportation Pacific. The company’s services are divided into two main heads – mainline and regional services. Mainline services account for more than 70% of the company’s revenue and regional and other services account for the remaining 20%. Regional services are carried out under a new brand name American Eagle. American Airlines is a founding member of the One World alliance, the third-largest airline alliance in the world.
The company’s revenue increased by around 3.2% from $40.68 billion in 2018 to $42.91 billion in 2019. Passenger revenue has been increasing in the last four years as well. PRASM is the passenger revenue per available seat mile. It is calculated by dividing the total passenger revenue with the total available seat miles.
In the first quarter of 2016, the PRASM for the company was $12.43 and then went up to $12.71 in the second quarter, $12.72 in the third quarter, and back to $12.71 in the last quarter.
The PRASM continued to increase in 2017 and went up to $13.98 in the first quarter, $14.43 in the second quarter, $13.82 in the third quarter, and $14.38 by the end of 2017.
The upward trend of the PRASM continued into 2018 and increased to $14.40 in the first quarter, $14.64 in the second quarter, $14.07 in the third quarter, and $14.59 in the last quarter of 2018.
In 2019 the PRASM had increased to $14.49 in the first quarter, $15.22 in the second quarter, $14.45 in the third quarter, and $14.72 in the fourth quarter.
The increasing PRASM puts the company in a solid position as its PRASM is increasing yearly as well as quarterly. The company’s overall revenue has also been increasing every year. The company’s passenger revenue, in general, has increased from $34.58 billion in 2016 to $39.14 billion in 2017 to $40.67 billion in 2018 and then reached to $41.98 billion by the end of 2019. The revenue has grown by almost 21% over the last four years.
The increasing revenue is now expected to see a major fall in 2020 due to the spread of the Coronavirus. Operations for the airlines have come to a halt and there is little to almost no revenue generation expected for at least the first half of 2020. This has affected almost all sectors, but the transportation industry has been one of the biggest victims of this pandemic.
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* Billed annually, local taxes extra.
* Local taxes extra.