In contrast, Redburn decided to downgrade American Airlines from a Buy to a Neutral. Most of American Airlines’ exposure is in the domestic market, which has proven to become fiercely competitive. Near-term sensitivity to rising fuel prices was also listed as a concern.

Southwest Airlines was similarly downgraded from a Neutral to a Sell. With a $27 price target, Southwest is set to continue facing downward pressure from tough economic conditions.

Other stocks that were assessed included DraftKings, which was upgraded from Equal Weight to Overweight by Wells Fargo, and Monster Beverage, upgraded from Neutral to Overweight by Piper Sandler.

The post United Airlines Upgraded, American Airlines Downgraded By Wall Street Experts 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 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.

According to American Airlines’ CCO Vasu Raja, the main reason for the decision is that the customers “aren’t buying” the first-class seats. Instead, the company will double down on the business class seats, which will become the new premium.

“The quality of the business class seat has improved so much. And frankly, by removing [first class] we can go provide more business class seats, which is what our customers most want or are most willing to pay for,” Raja said during a recent investors call.

However, it appears that the passengers won’t see much difference even when first class becomes obsolete at Americana Airlines. According to airline consultant Mike Boyd, this will mostly be a name change rather than a major revamp.

“This is mostly a name change,” Boyd explained. “Business class at most carriers is what we would have called first class 20 years ago.”

When reached out for comment by CNN, American Airlines’ spokesperson confirmed that the change would take place only for international flights. The company will still offer first-class seats for domestic flights.

The post American Airlines Will Remove First Class Seats on International Flights appeared first on theprimarymarket.com.

AA’s CEO Robert Isom detailed the proposal in an internal video shared with employees earlier this week. According to CNBC, which has the video in its possession, the new contract offered to pilots would see 6 percent raise upon signing and 5 percent hikes in 2023 and 2024.

The American Airlines move follows rival United Airlines’ tentative agreement with its pilots’ union to increase salaries by around 14 percent in the next year and a half. However, United’s deal wasn’t made official and is now on pause as the union considers recent developments.

“United put forth industry leading pay, and we matched that for our team,” said Isom in the clip adding that AA’s pilots will be “paid well, and paid competitively, no matter what.”

The Allied Pilots Association, which represents American’s pilots, is currently in the process of reviewing the proposal, according to the union’s spokesperson Dennis Tajer.

It doesn’t come as a surprise that the airlines are making an extra effort to keep their pilots happy. The industry has an obvious lack of pilots to cover the increasing demand for traveling, which has picked up in 2022 and is expected to continue going up in the coming months.

The post American Airlines Promises 17% Pay Increase for Pilots appeared first on theprimarymarket.com.

In contrast, Redburn decided to downgrade American Airlines from a Buy to a Neutral. Most of American Airlines’ exposure is in the domestic market, which has proven to become fiercely competitive. Near-term sensitivity to rising fuel prices was also listed as a concern.

Southwest Airlines was similarly downgraded from a Neutral to a Sell. With a $27 price target, Southwest is set to continue facing downward pressure from tough economic conditions.

Other stocks that were assessed included DraftKings, which was upgraded from Equal Weight to Overweight by Wells Fargo, and Monster Beverage, upgraded from Neutral to Overweight by Piper Sandler.

The post United Airlines Upgraded, American Airlines Downgraded By Wall Street Experts 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 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.

According to American Airlines’ CCO Vasu Raja, the main reason for the decision is that the customers “aren’t buying” the first-class seats. Instead, the company will double down on the business class seats, which will become the new premium.

“The quality of the business class seat has improved so much. And frankly, by removing [first class] we can go provide more business class seats, which is what our customers most want or are most willing to pay for,” Raja said during a recent investors call.

However, it appears that the passengers won’t see much difference even when first class becomes obsolete at Americana Airlines. According to airline consultant Mike Boyd, this will mostly be a name change rather than a major revamp.

“This is mostly a name change,” Boyd explained. “Business class at most carriers is what we would have called first class 20 years ago.”

When reached out for comment by CNN, American Airlines’ spokesperson confirmed that the change would take place only for international flights. The company will still offer first-class seats for domestic flights.

The post American Airlines Will Remove First Class Seats on International Flights appeared first on theprimarymarket.com.

AA’s CEO Robert Isom detailed the proposal in an internal video shared with employees earlier this week. According to CNBC, which has the video in its possession, the new contract offered to pilots would see 6 percent raise upon signing and 5 percent hikes in 2023 and 2024.

The American Airlines move follows rival United Airlines’ tentative agreement with its pilots’ union to increase salaries by around 14 percent in the next year and a half. However, United’s deal wasn’t made official and is now on pause as the union considers recent developments.

“United put forth industry leading pay, and we matched that for our team,” said Isom in the clip adding that AA’s pilots will be “paid well, and paid competitively, no matter what.”

The Allied Pilots Association, which represents American’s pilots, is currently in the process of reviewing the proposal, according to the union’s spokesperson Dennis Tajer.

It doesn’t come as a surprise that the airlines are making an extra effort to keep their pilots happy. The industry has an obvious lack of pilots to cover the increasing demand for traveling, which has picked up in 2022 and is expected to continue going up in the coming months.

The post American Airlines Promises 17% Pay Increase for Pilots appeared first on theprimarymarket.com.