American Airlines reported a loss of $312 million in the first quarter of 2024 despite its efforts to combat rising costs.

Operational costs increased by 8% as a result of raising employee wages by 18%. However, even when these one-time line items were adjusted, American Airlines still lost $226 million, or about 34 cents per share. The company also blamed “air traffic control challenges and significant weather events.”

“While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets,” CEO Robert Isom said in an earnings release.

The company still reported an increased revenue of 3.1%, which added up to over $12.5 billion. This was a record for American.

Last year’s first quarter saw a profit of 2 cents per share, or $10 million.

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This comes despite the airline’s efforts to lower costs by raising checked bag fees for the first time since 2018. Fees increased from $30 earlier this year to either $35 for those who pay a checked bag fee online or $40 for those who pay in person.

Southwest Airlines is experiencing similar shortfalls as it plans to shut down routes at four airports and lay off 2,000 employees.