NEW YORK - American Airlines Group Inc. (NASDAQ: NASDAQ:AAL) hosted its 2024 Investor Day today, where CEO Robert Isom and other senior leaders presented the company's financial targets and strategic initiatives aimed at long-term value creation.
The airline's leadership team discussed plans to enhance operational efficiency and customer experience while targeting an adjusted EBITDAR margin of approximately 14% to 18% from 2024 through 2026. American also anticipates generating free cash flow of around $2 billion in 2024, with expectations of exceeding $3 billion in the following years.
The company's strategy includes operating a modernized fleet designed for efficiency, driving operational excellence with a tech-first approach, and leveraging the competitive strengths of its network. American Airlines aims to attract and retain customers through its AAdvantage travel rewards program and focus on reengineering the business for efficient growth.
American's management highlighted the airline's efforts to deliver a reliable operation for customers, which they believe will result in durable earnings and expanded margins over the long term. The company has set financial goals, which include reducing total debt from approximately $41 billion in 2024 to less than $35 billion in the years beyond 2026.
The presentation at the Investor Day, which took place at 1 p.m. ET, was also available via a live webcast on the company's Investor Relations website. American Airlines used the event to provide insights into the drivers of its value-creation opportunities, emphasizing the importance of a transformed fleet and the reengineering of its business model.
This news is based on a press release statement from American Airlines Group Inc.
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