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American Airlines’ cargo revenue shrinks 38% in 1st quarter

Company escapes with small profit heading into busy summer travel season

Eric Kulisch
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American Airlines hauls large amounts of cargo in the lower deck of its passenger aircraft, especially widebodies serving international markets. (Photo: Jim Allen/FreightWaves)

American Airlines saw first-quarter cargo revenue fall 37.8% year over year to $223 million primarily due to lower yield and lower demand, the company reported on Thursday. The company’s cargo revenue was only $5 million more than in 2019, a weak year for cargo and benchmark for a normal business environment following the pandemic.

Nearly every airline is experiencing large double-digit drops in cargo business as consumers pull back due to high inflation and economic uncertainty or shift spending to services, retailers with excess inventories postpone large orders, and ocean shipping has become more reliable again. 

Cargo revenue at United Airlines declined 37% in the first quarter. Delta Air Lines’ cargo sales shrank 28% and Hawaiian Airlines on Tuesday said cargo revenue fell 25%. 

Freight rates are likely to feel additional downward pressure until the global economy picks up because of extra capacity entering the market as airlines reintroduce passenger services that were canceled during the COVID crisis.


American Airlines (NASDAQ: AAL) said demand in terms of tons multiplied by distance carried fell 21.2% and the average shipping rate fell 22% during the quarter. Cargo revenue in absolute terms was $141 million lower than a year ago.

American achieved a record $1.2 billion in cargo revenue in 2022 even as the slowdown in shipping increased throughout the year. 

Overall, American eked out a $10 million profit compared to losses at rivals United and Delta. All three airlines are expected to finish the year strong coming out of the traditionally slow first quarter as travel bookings remain robust. The primary reason for domestic carriers’ lackluster performance in the first quarter was that rising costs for fuel and labor as well as weather delays outpaced decent revenue growth. Labor shortfalls, air traffic control delays and slow manufacturing of new aircraft are crimping capacity, contributing to high fares and revenue momentum for the industry.

American generated record first-quarter revenue of $12.2 billion and said demand continues to show strength, especially in the lucrative international sector. 


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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, Eric was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at [email protected]