Shares of American Airlines (NASDAQ:AAL) rose sharply in premarket trading on Thursday after exceeding Q3 earnings expectations for the third quarter.
The airline notched $0.69 in earnings per share, coming in $0.13 above estimates. Meanwhile, a 50.1% jump in revenue from the prior year came in-line with estimates, but was noted as a quarterly record and 13% above the same period in 2019. The strong revenue came despite capacity that remains 9.6% below pre-pandemic levels.
“Demand remains strong, and it’s clear that customers in the U.S. and other parts of the world continue to value air travel and the ability to reconnect post-pandemic,” CEO Robert Isom said. “American has the youngest, most fuel-efficient fleet among U.S. network carriers, and we are well-positioned for the future because of the incredible efforts of our team.”
The company expects total Q4 revenue to be 11% to 13% higher than the comparable period in 2019 as capacity climbs to within 5% to 7% of pre-pandemic trends. Adjusted EPS for the final quarter of the year is anticipated to range from $0.50 to $0.70, well above the $0.27 analyst consensus.
Elsewhere, the airline said it made $380M in scheduled debt and finance lease payments in pursuit of consistent debt reduction. Total debt for the carrier has been reduced by $5.6B from peak levels in 2021. Management aims to reduce total debt by $15B by 2025, bringing the burden down from $34.2B on the balance sheet as of September 30.
Shares of American Airlines (AAL) rose 3% in premarket hours on Thursday.
Dig into the details of the quarterly results.
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