American Airlines CEO Robert Isom stopped short of confirming that the airline is working toward an intensified partnership with Alaska Airlines, and his comments Thursday on the matter during the airline's first-quarter earnings call are likely to fuel further speculation.
"As their business has changed and ours has, too, we look for opportunities going forward," Isom said of Alaska. "I know that they've been fiercely independent, but at the same time we have been able to cooperate for the good of consumers on a number of fronts. And we'll look forward to doing more with Alaska going forward."
He made his remarks following a Bloomberg report on Wednesday that the two carriers are exploring revenue-sharing arrangements.
American and Alaska are already Oneworld alliance partners. American played a key role in bringing Alaska into the alliance in 2021, Isom noted. The airlines also have a codesharing partnership centered on Western U.S. and transpacific routes.
A revenue-sharing partnership would need regulatory approval. American was engaged in a revenue-sharing and joint-scheduling partnership with JetBlue out of New York and Boston from 2021 to 2023, until it was dissolved by a court order after President Biden's Justice Department challenged the partnership as anticompetitive.
AA reports Q1 net loss
For the first quarter, American reported operating revenue of $13.91 billion, up 10.8% year over year and beating analyst expectations by $160 million, according to investment website Seeking Alpha. Yields, defined as revenue per passenger-mile flown, were up 5.6% as fare increases -- implemented because of rising fuel costs -- took hold.
The high cost of crude drove American's fuel cost up $341 million, as overall operating expenses rose by 8.8%, to $13.95 billion.
American reported an operating loss of $41 million in the first quarter, compared to a loss of $270 million last year.
The airline's Q1 net loss was $382 million.
American is expecting approximately breakeven operations in the second quarter, with higher fuel expenses countered by continued robust demand.