American Q3 Earnings Showing Similar Revenue (and Cost) Trends

The numbers largely speak for themselves. What you see is a good story. What you don’t see is that it’s not as good a story as American’s rivals.

This brings to light several strong areas, but also some of concern. It is good to see domestic revenues continue to increase, however it is concerning to see the declining trend of Pacific and cargo revenues. This is consistent with the competition, and certainly not limited to American.

The story remains: American’s revenues are increasing, however not at a pace to match Delta and United. Meanwhile, costs continue to increase at all airlines.

As much as we experiment with different techniques to visualize earnings, sometimes the simple way is the best. The income statement is important, and the best way to show the absolute magnitude is to show the numbers.

However, we also believe context is important. Included for each line item of the income statement is a trending spark line showing how this result compares with the past 8 quarters.