Categories Earnings

American Airlines stock on landing mode after guidance cut

Shares of American Airlines (NYSE: AAL) took a beating on Thursday after the company lowered its guidance for the fiscal year. The company also missed the top-line projection, albeit a small margin.

Hurt by the grounding of Boeing 737 MAX and the ongoing labor contract negotiations, American Airlines said its third-quarter revenues managed to grow a modest 3% to $11.91 billion, missing the street mark of $11.93 billion.

American Airlines Q3 2019 earnings results

Keeping wary of these challenges, the company also slashed its projection on FY19 adjusted EPS to $4.50 – $5.50, compared to the prior estimate of $4.50 – $6.00.

Meanwhile, American Airlines’ Q3 adjusted earnings of $1.42 per share, came in 3 cents above the street consensus.

The stock was trading down 0.5% during pre-market hours on Thursday. The stock has declined 6% in year-to-date period.

READ: Spirit Airlines (SAVE): Q3 2019 Earnings Snapshot

CEO Doug Parker said, “We are pleased to report an earnings increase of 15% and earnings per share growth of 20% for the third quarter, excluding net special items. However, we know that our results should have been better.”

Passenger revenue per available seat mile (PRASM) grew 3% to a 14.50 cents, helped by better load factor during the quarter. TRASM increased by 2%, in line with the management’s projection.

Earlier this month, United Airlines (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) reported mixed quarterly results.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

2 thoughts on “American Airlines stock on landing mode after guidance cut

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top