American Airlines

American Airlines (AAL) shares dropped early Wednesday after lowering its outlook for the second quarter, while the air carrier said its chief commercial officer will depart next month. The company now expects per-share adjusted earnings to be in a range of $1 to $1.15 for the ongoing three-month period, down from its prior guidance for $1.15 to $1.45, it said in a late Tuesday filing with the Securities and Exchange Commission. The consensus on Capital IQ is for normalized EPS of $1.21. The stock fell more than 6% in recent premarket activity. Total revenue per available seat mile, which is commonly used in the airline industry to measure efficiency, is now pegged to decline by roughly 5% to 6% on a yearly basis. The carrier previously forecast the metric to be down about 1% to 3% in the second quarter. Cost per available seat mile, excluding fuel, is set to […]

American Airlines has lowered guidance for the current quarter, and the carrier’s revenue challenges are probably going to persist past the summer given how many low- and ultra-low-cost rivals are now popping up at American’s top hubs, Seaport analyst David McKenzie says in a research note. Spirit Airlines and Frontier Airlines are shifting growth to Dallas Fort-Worth and Charlotte, American’s top two hubs, and pricing is starting to soften industrywide, the analyst says. “In short, AAL’s plans for high-single-digit growth this summer are running into challenges and proving premature,” he says, downgrading the stock to neutral. Shares fall 15% to $11.45.

American Airlines is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The airline carrier cut its second-quarter adjusted profit forecast to $1 to $1.15 a share, down from a previous range of $1.15 to $1.45 a share. Also, American said it would part ways with Vasu Raja, chief commercial officer. Raja was the executive behind Americans pivot away from selling tickets through agencies and prioritizing direct sales via the airlines app and website. The moves helped American cut expenses but cost the airline some market share among lucrative corporate travelers. Dow Jones & Co. owns Factiva.

Boeing stock turned higher in Monday trading after investors stopped worrying about quality problems for a minute and thought about strong demand for new commercial jets instead. Boeing shares had dipped to as low as about $197 early Monday after Friday’s $200 close. Investors have been weighing what a potential takeover of supplier Spirit AeroSystems Holdings means for Boeing stock and efforts to improve manufacturing quality. Both companies confirmed talks this past Friday. Early Monday, Boeing stock was down about $10 dollars since buyout talks surfaced. Spirit Aero shares were up about $5, to $33.32 over the same span. Boing shares rebounded, for a gain of about 0.3% in midday trading while the S&P 500 and Dow Jones Industrial Average are down 0.1% and 0.2%, respectively. American Airlines Group helped turn things around. Monday, American announced an order for 260 jets, including 85 Airbus A321neo jets and 85 Boeing 737

American Airlines stock picked up another Buy rating Monday as Wall Street continued to warm to the shares after the carrier’s fourth-quarter earnings. Citi analysts upgraded the stock to Buy from Neutral, noting that the mainline airlines have moved into a position of strength in the postpandemic environment because of their diversified revenue streams and premium offerings. “Against this backdrop, American’s ongoing deleveraging focus and continued low capex, along with protracted industry capacity constraints, should continue to support the likes of American Airlines,” Citi’s Stephen Trent said in a note Monday. His target price of $20 implies a 32% gain from Friday’s closing price. He still prefers Delta Air Lines and United Airlines, but his call puts American ahead of Neutral-rated Southwest Airlines. Sentiment toward the stock on Wall Street is starting to shift, with 43% of those covering the shares rating them Buy. That is the highest since November

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We cut our 12-month target by $7 to $13, 6.0x our 2024 EPS view ($2.17 from $3.26; 2023’s cut to $2.43 from $3.01), below AAL’s 2018-2019 historical forward average of 6.9x. We think a discount is merited due to rising unit costs. Q3 EPS of $0.38 vs. $0.69, beat consensus by $0.12. Q3 passenger revenues were flat Y/Y, as AAL’s international segment (+5%) was not enough to offset the 2% decline within its domestic segment (69% of Q3 passenger revenues). In Q3, AAL finalized a new labor contract with its pilots, including $9.6B in total compensation (increasing pay by 46% over the next four years); however, AAL noted that it has yet to finalize a deal with its flight attendants and agents, which we think will place

American Airlines reports third-quarter 2023 financial results FORT WORTH, Texas, Oct. 19, 2023 — American Airlines Group Inc. (NASDAQ: AAL) today reported its third-quarter 2023 financial results, including: — Record third-quarter revenue of approximately $13.5 billion. — GAAP third-quarter net loss of $545 million, or ($0.83) per diluted share. — Excluding net special items1, third-quarter net income of $263 million, or $0.38 per diluted share. — Record third-quarter completion factor, best among U.S. network carriers. — Ended the third quarter with approximately $13.5 billion of total available liquidity. — Reduced total debt2 by $1.4 billion in the third quarter. — Credit rating upgraded by Fitch, Moody’s and Standard & Poor’s during the third quarter. “The American Airlines team continues to produce strong results,” said American’s CEO Robert Isom. “Our team is delivering record-setting reliability and operational performance. We are executing on our plans and remain well-positioned for the future, supported

American Airlines Q3 Adj. EPS 38 Cents Vs. 69 Cents a Year Ago, Beats the FactSet Consensus 25 Cents.

American Airlines Group (AAL) reported Q3 adjusted earnings Thursday of $0.38 per diluted share, down from $0.69 a year earlier. Analysts polled by Capital IQ expected $0.26. Total operating revenue for the quarter ended Sept. 30 was $13.48 billion, compared with $13.46 billion a year earlier. Analysts surveyed by Capital IQ expected $13.54 billion. For Q4, the airline said it expects break-even adjusted earnings per diluted share. Analysts surveyed by Capital IQ expect earnings of $0.09. For 2023, the company said it now expects adjusted EPS of $2.25 to $2.50 per diluted share, down from its prior outlook of $3 to $3.75. Analysts polled by Capital IQ expect $2.36.