American Airlines' share of indirect channel revenue in the second quarter was down 3 percent compared with its historical level, before a since-abandoned controversial sales and distribution strategy drove the figure down.
The second quarter was better than the 5 percent deficit initially projected for the period, according to an earnings presentation. The carrier estimates its indirect channel share will be down 2 percent in the third quarter.
"We remain on track to get back to our historical share of indirect channel revenue as we exit 2025," president and CEO Robert Isom said during a Thursday morning earnings call.
Isom added that during the quarter, corporate managed revenue grew 10 percent year over year, "outpacing broader industry growth."
In an earnings release, however, American noted that the restoration of revenue from indirect channels was "driven by a faster-than-expected recovery in leisure channels."
Isom later in the call said that the corporate managed growth occurred "in a relatively flat business market. We've got a few percentage points more to get back to where we were prior to the sales and distribution strategy change. … I do believe that the last few percentage points are going to be hard, but also I think that they're going to be the most profitable points we bring in."
The carrier's distribution costs for the second quarter increased 17.5 percent to $535 million.
American Q2 Metrics
American reported second-quarter passenger revenue of $13.1 billion, down 0.6 percent year over year. Total revenue of $14.4 billion, a record for the quarter, was up 0.4 percent from a year prior. Net income for the quarter was $599 million compared with $717 million in Q2 2024.
Total capacity for the quarter increased 3.2 percent year over year. Domestic capacity increased 4.8 percent versus Q2 2024. International capacity was flat. Average fuel cost was $2.29 per gallon.
American projected third-quarter capacity to increase 2 percent to 3 percent year over year and total revenue to be down 2 percent to up 1 percent for the same period.
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