American Airlines shares jump 2.2% premarket after airline raises its Q4 guidance

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American Airlines Group Inc. shares AAL,
-2.54%
jumped 2.2% in premarket trade Tuesday, after the airline updated its fourth-quarter guidance to reflect a less bad than expected performance. American said it now expects revenue to be down about 17% compared with the fourth quarter of 2019, before the start of the pandemic, better than previous guidance of down 20%. The company flew 61.1 billion total available seat miles in the quarter, down 13% versus the prior guidance of down 11% to 13%. The company expects cost per available seat mile, or CASM, a measurement of efficiency, to be up 13% to 14% compared to the fourth quarter of 2019, compared with earlier guidance of up 8% to 10%. “This change versus previous guidance is mainly due to lower capacity, the Company’s fourth quarter holiday operational incentive program, and a write down of excess spare parts inventory,” the company said in a regulatory filing. It expects its liquidity to stand at about $15.8 billion at quarter end. Shares have gained 25% in the last 12 months, while the US Global JETS ETF JETS,
-1.35%
has gained 0.1% and the S&P 500 SPX,
-0.14%
has gained 22%.

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