American Airlines Posts Record Quarterly and Full-Year Revenue As Strong Travel Demand Persists

American Airlines posted solid fourth-quarter and full-year 2022 results as underlying travel demand remains strong. The airline delivered record sales of $49 billion for the year and generated $1.6 billion in operating profit, both consistent with our full-year forecast. Its revenue for the full year exceeded 2019 levels by 7%, despite flying nearly 9% less capacity. It has also delivered three consecutive quarters of operating profitability, despite grappling with higher costs related to fuel and hiring and training flight crew personnel. The company benefited from favorable pricing dynamics to offset inflationary costs during the year. We raise our fair value estimate by 5% to $21 per share to reflect continued strength in the demand environment.