Is American Airlines' cargo segment recovering in 2024?

American Airlines' cargo segment is showing signs of recovery in 2024, although the full-year cargo revenue is expected to be marginally lower than the previous year. Here are the key points to consider:

1. **Fourth-Quarter Performance**: American Airlines reported a 10.5% increase in cargo revenue for the fourth quarter of 2024, reaching $220 million. This is a positive indicator of recovery, especially when compared to the $199 million reported in the same period the previous year.

2. **Full-Year Cargo Revenue**: However, the full-year cargo revenue for 2024 is expected to be $804 million, which is slightly lower than the $812 million recorded in 2023. This marginal decline may suggest that while the recovery is ongoing, it is not yet strong enough to surpass the previous year's figures.
3. **Tonne Miles and Yield**: The cargo tonne miles increased by 12% to 2.06 billion, and the cargo yield per tonne mile was up by 5% to 41.85 cents. These improvements are positive signs, indicating that the cargo segment is not only maintaining but also improving its operational efficiency.
4. **Overall Financial Performance**: American Airlines reported record fourth-quarter revenue of $13.7 billion and a full-year revenue of $54.2 billion, showcasing strong financial performance across its passenger and cargo segments. The airline's net income for the full year was $846 million, reflecting a robust financial foundation that supports its cargo segment's recovery.

In conclusion, while American Airlines' cargo segment is recovering in 2024, as evidenced by the fourth-quarter revenue increase and improved tonne miles and yield, the full-year cargo revenue slightly declining from the previous year suggests that the recovery is ongoing and has not yet reached the same level of performance as 2023. The overall financial performance of the airline, however, indicates a strong financial foundation that is supporting the cargo segment's recovery efforts.