- American Airlines Group, Inc (NASDAQ:AAL) said it expects fourth-quarter revenue to be better than expected on robust demand for air travel through the holiday season.
- American Airlines expects revenue to rise between 16% – 17% from Q4 of 2019, above the consensus of $12.70 billion, the Wall Street Journal reported. The earlier growth guidance was 11% – 13%.
- The airlines expected adjusted EPS of $1.12 – $1.17, up from the prior guidance of $0.50 – $0.70, above the consensus of $0.60.
- Airlines also managed to mitigate some of the higher fuel and labor costs through higher ticket prices, Reuters reports.
- Revenue per available seat mile will likely be up 24% versus 2019, topping prior guidance.
- Costs, excluding fuel and special items, were likely to increase 10% above 2019 levels, up from the prior forecast of 8% – 10%.
- The airline said it flew 6.1% less than in the same period in 2019, compared with the 5% – 7% lower capacity that it had expected.
- The update coincided with a worsening economic outlook and high inflation, fueling concerns about consumer demand.
- Price Action: AAL shares traded higher by 5.02% at $16.11 in the premarket on the last check Thursday.
Chipotle Shares Get Burnt After Company Serves Up Mixed Q2 Earnings
Chipotle Mexican Grill Inc (NYSE: CMG) reported second-quarter financial results on Wednesday.
