American Airlines Sees Better Fourth-Quarter Revenue. The Stock Is Rising.

- Advertisement -


American Airlines will report fourth-quarter earnings on January 20.

- Advertisement -

Danielle Slim/AFP via Getty Images

- Advertisement -

American Airlines stock jumped 2% in premarket trading on Tuesday after the carrier said its fourth-quarter revenue was better than previously expected.

American (ticker: AAL) said expected total revenue Down 17% at 2019 levels in the fourth quarter, beating its previous forecast of a 20% decrease. The stock jumped shortly after better guidance was issued before slipping back to trade about 1.4% higher.

- Advertisement -

When it comes to capacity, the company said it flew 61.1 billion available seat miles in the last three months of 2021, down 13% from the same period in 2019, which was at the low end of its previous guidance .

The airline’s cost per available seat mile (excluding fuel) — as a measure of efficiency — is up 13% to 14% compared to 2019 levels, exceeding prior guidance of 8 to 10%. American attributed the increase to reduced capacity, its holiday operating incentive program and the write-down of additional spare parts. The airline offered a $1,000 bonus to full attendance employees during the holiday season to navigate the busy travel period.

Investors will be watching the airline sector’s earnings closely in the coming weeks for an indication of how the Omicron coronavirus variant will impact guidance in the final months of 2021 and the rest of 2022.

The company is scheduled to report fourth-quarter earnings on January 20. Delta Air Lines (DAL) will get into earnings season for major US airlines on Thursday.

Write to Callum Keown at [email protected]

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox