American Airlines rallies after setting profit guidance ahead of expectations

American Airlines Group (NASDAQ:AAL) flew higher in early trading on Thursday after topping Q4 EPS and margin expectations.

The airline company noted that it performed well operationally during the holiday period. American Airlines (AAL) achieved its best-ever completion factor and on-time departures, as well as its lowest mishandled baggage rate over the holidays.

Operating revenue was down 1.0% year-over-year to $13.06B during the quarter. Operating expenses rose 5.1% Y/Y to $12.41B, led by a 19% jump in maintenance, materials, and repair costs. Passenger revenue per available seat mile fell 6.4% to $0.1872. AAL’s load factor during the quarter fell to 83.6% from 86.6%. Costs per available seat mile excluding fuel were up 4.2% to $0.1324. American (AAL) reported that it generated an operating margin of 5.1% in Q4, exceeding the high end of the company’s prior guidance. The margin improvement was driven by continued strong demand for AAL’s product, record revenue from its travel rewards program, strong operational performance, and effective cost control

On the balance sheet, AAL ended the quarter with approximately $10.4B of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.

Looking ahead, American Airlines (AAL) sees Q1 EPS of -$0.35 to -$0.15 vs. -$0.22 consensus. Q1 capacity is expected to be up 6.5% to 8.5%. For the full year, EPS of $2.25 to $3.25 is anticipated, vs. $2.14 consensus.

CEO update: “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.”

Shares of American Airlines Group (AAL) were up 4.59% in premarket trading on Thursday. The Seeking Alpha Quant Rating on AAL is flashing Strong Buy, and the quant score is the second highest in the entire airline sector. Shares of AAL are up 5.1% on a year-to-date basis.

American Airlines Group (NASDAQ:AAL) flew higher in early trading on Thursday after topping Q4 EPS and margin expectations.

The airline company noted that it performed well operationally during the holiday period. American Airlines (AAL) achieved its best-ever completion factor and on-time departures, as well as its lowest mishandled baggage rate over the holidays.

Operating revenue was down 1.0% year-over-year to $13.06B during the quarter. Operating expenses rose 5.1% Y/Y to $12.41B, led by a 19% jump in maintenance, materials, and repair costs. Passenger revenue per available seat mile fell 6.4% to $0.1872. AAL’s load factor during the quarter fell to 83.6% from 86.6%. Costs per available seat mile excluding fuel were up 4.2% to $0.1324. American (AAL) reported that it generated an operating margin of 5.1% in Q4, exceeding the high end of the company’s prior guidance. The margin improvement was driven by continued strong demand for AAL’s product, record revenue from its travel rewards program, strong operational performance, and effective cost control

On the balance sheet, AAL ended the quarter with approximately $10.4B of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.

Looking ahead, American Airlines (AAL) sees Q1 EPS of -$0.35 to -$0.15 vs. -$0.22 consensus. Q1 capacity is expected to be up 6.5% to 8.5%. For the full year, EPS of $2.25 to $3.25 is anticipated, vs. $2.14 consensus.

CEO update: “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.”

Shares of American Airlines Group (AAL) were up 4.59% in premarket trading on Thursday. The Seeking Alpha Quant Rating on AAL is flashing Strong Buy, and the quant score is the second highest in the entire airline sector. Shares of AAL are up 5.1% on a year-to-date basis.American Airlines Group (NASDAQ:AAL) flew higher in early trading on Thursday after topping Q4 EPS and margin expectations.

The airline company noted that it performed well operationally during the holiday period. American Airlines (AAL) achieved its best-ever completion factor and on-time departures, as well as its lowest mishandled baggage rate over the holidays.

Operating revenue was down 1.0% year-over-year to $13.06B during the quarter. Operating expenses rose 5.1% Y/Y to $12.41B, led by a 19% jump in maintenance, materials, and repair costs. Passenger revenue per available seat mile fell 6.4% to $0.1872. AAL’s load factor during the quarter fell to 83.6% from 86.6%. Costs per available seat mile excluding fuel were up 4.2% to $0.1324. American (AAL) reported that it generated an operating margin of 5.1% in Q4, exceeding the high end of the company’s prior guidance. The margin improvement was driven by continued strong demand for AAL’s product, record revenue from its travel rewards program, strong operational performance, and effective cost control

On the balance sheet, AAL ended the quarter with approximately $10.4B of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.

Looking ahead, American Airlines (AAL) sees Q1 EPS of -$0.35 to -$0.15 vs. -$0.22 consensus. Q1 capacity is expected to be up 6.5% to 8.5%. For the full year, EPS of $2.25 to $3.25 is anticipated, vs. $2.14 consensus.

CEO update: “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.”

Shares of American Airlines Group (AAL) were up 4.59% in premarket trading on Thursday. The Seeking Alpha Quant Rating on AAL is flashing Strong Buy, and the quant score is the second highest in the entire airline sector. Shares of AAL are up 5.1% on a year-to-date basis.

American Airlines Group (NASDAQ:AAL) flew higher in early trading on Thursday after topping Q4 EPS and margin expectations.

The airline company noted that it performed well operationally during the holiday period. American Airlines (AAL) achieved its best-ever completion factor and on-time departures, as well as its lowest mishandled baggage rate over the holidays.

Operating revenue was down 1.0% year-over-year to $13.06B during the quarter. Operating expenses rose 5.1% Y/Y to $12.41B, led by a 19% jump in maintenance, materials, and repair costs. Passenger revenue per available seat mile fell 6.4% to $0.1872. AAL’s load factor during the quarter fell to 83.6% from 86.6%. Costs per available seat mile excluding fuel were up 4.2% to $0.1324. American (AAL) reported that it generated an operating margin of 5.1% in Q4, exceeding the high end of the company’s prior guidance. The margin improvement was driven by continued strong demand for AAL’s product, record revenue from its travel rewards program, strong operational performance, and effective cost control

On the balance sheet, AAL ended the quarter with approximately $10.4B of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.

Looking ahead, American Airlines (AAL) sees Q1 EPS of -$0.35 to -$0.15 vs. -$0.22 consensus. Q1 capacity is expected to be up 6.5% to 8.5%. For the full year, EPS of $2.25 to $3.25 is anticipated, vs. $2.14 consensus.

CEO update: “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team. As we look forward, we remain focused on delivering a reliable operation for our customers and reengineering the business to build an even more efficient airline.”

Shares of American Airlines Group (AAL) were up 4.59% in premarket trading on Thursday. The Seeking Alpha Quant Rating on AAL is flashing Strong Buy, and the quant score is the second highest in the entire airline sector. Shares of AAL are up 5.1% on a year-to-date basis.