The post American Airlines Reports $1.3 Billion Profit in Q2, Raises 2023 Profit Forecast appeared first on theprimarymarket.com.
]]>The airline company previously predicted a $2.50 to $3.50 per share earnings for the year but is now expecting to earn $3 and $3.75 per share by the end of 2023. This is in line with estimates of $3.10 by Wall Street analysts.
American benefited from the strong travel demand in recent months as well as significant drops in the prices of jet fuel. However, the company expects to give up some of the $1.3 billion in savings towards increased labor costs.
“Over time, we are going to run a profitable business,” said American CEO Robert Isom during a conference with analysts and reporters. “Ultimately, it will take more revenue to pay for higher costs.”
American topped the analysts’ estimates for Q2 revenue, bringing in $14.06 billion versus $13.74 billion expected. Still, the company predicts that its revenue per seat will take a dip in the third quarter due to an increased number of flights, something that didn’t sit well with analysts and investors.
The shares of American Airlines dropped by 6.02% on Thursday, trading at $17.48 compared to Wednesday’s close price of $18.60. The company’s stock has been almost 40% year-to-date.
The post American Airlines Reports $1.3 Billion Profit in Q2, Raises 2023 Profit Forecast appeared first on theprimarymarket.com.
]]>The post American Airlines Forecasts Rising Profit Amid High Travel Demand appeared first on theprimarymarket.com.
]]>The airline expects a fourth quarter adjusted earnings per diluted share between $1.12 and $1.17, thus significantly exceeding analysts’ prior expectations of 60 cents per share. American Airlines has also projected its revenue for the quarter to rise by 16% to 17% from the fourth quarter of 2019, before the outbreak of the COVID pandemic. This is a rise from the 11% to 13% growth that the airline initially forecasted.
For American Airlines, a rise in profit will be an especially positive result given the challenges that faced players in the air travel industry. Faced by an industry-wide pilot shortage that made it more challenging for airlines to capitalize on the surge in demand, American Airlines was down in capacity by 6.1% versus the fourth quarter of 2019.
Along with its rising revenue, American Airlines also expects its costs excluding fuel to be up by about 10% for the fourth quarter.
The post American Airlines Forecasts Rising Profit Amid High Travel Demand appeared first on theprimarymarket.com.
]]>The post American Airlines Reports $1.3 Billion Profit in Q2, Raises 2023 Profit Forecast appeared first on theprimarymarket.com.
]]>The airline company previously predicted a $2.50 to $3.50 per share earnings for the year but is now expecting to earn $3 and $3.75 per share by the end of 2023. This is in line with estimates of $3.10 by Wall Street analysts.
American benefited from the strong travel demand in recent months as well as significant drops in the prices of jet fuel. However, the company expects to give up some of the $1.3 billion in savings towards increased labor costs.
“Over time, we are going to run a profitable business,” said American CEO Robert Isom during a conference with analysts and reporters. “Ultimately, it will take more revenue to pay for higher costs.”
American topped the analysts’ estimates for Q2 revenue, bringing in $14.06 billion versus $13.74 billion expected. Still, the company predicts that its revenue per seat will take a dip in the third quarter due to an increased number of flights, something that didn’t sit well with analysts and investors.
The shares of American Airlines dropped by 6.02% on Thursday, trading at $17.48 compared to Wednesday’s close price of $18.60. The company’s stock has been almost 40% year-to-date.
The post American Airlines Reports $1.3 Billion Profit in Q2, Raises 2023 Profit Forecast appeared first on theprimarymarket.com.
]]>The post American Airlines Forecasts Rising Profit Amid High Travel Demand appeared first on theprimarymarket.com.
]]>The airline expects a fourth quarter adjusted earnings per diluted share between $1.12 and $1.17, thus significantly exceeding analysts’ prior expectations of 60 cents per share. American Airlines has also projected its revenue for the quarter to rise by 16% to 17% from the fourth quarter of 2019, before the outbreak of the COVID pandemic. This is a rise from the 11% to 13% growth that the airline initially forecasted.
For American Airlines, a rise in profit will be an especially positive result given the challenges that faced players in the air travel industry. Faced by an industry-wide pilot shortage that made it more challenging for airlines to capitalize on the surge in demand, American Airlines was down in capacity by 6.1% versus the fourth quarter of 2019.
Along with its rising revenue, American Airlines also expects its costs excluding fuel to be up by about 10% for the fourth quarter.
The post American Airlines Forecasts Rising Profit Amid High Travel Demand appeared first on theprimarymarket.com.
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