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American Airlines Sees Signs Of Continued Recovery In Demand; Stock Up

While reporting narrower net loss in its first quarter, American Airlines Group Inc. (AAL) on Thursday said it expects its second-quarter total revenue to be down approximately 40 percent compared to the pre-covid levels in 2019.

Based on current trends, American expects its second-quarter capacity to be down 20 to 25 percent compared to the second quarter of 2019. The company also expects its second- quarter adjusted pre-tax margin to be between negative 27 percent and negative 30 percent.

The company will continue to match its forward capacity with observed bookings trends.

American's Chairman and CEO Doug Parker said, "Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand. We remain confident the network enhancements, customer-focused improvements and efficiency measures we've put into place will ensure American is well-positioned for the recovery."

For the first quarter, net loss was $1.25 billion, or $1.97 per share, compared to last year's loss of $2.24 billion or $5.26 per share. Excluding net special items, first-quarter net loss was $2.7 billion, or $4.32 per share.

On average, 17 analysts polled by Thomson Reuters expected loss of $4.30 per share. Analysts' estimates typically exclude special items.

Total operating revenues were $4.01 billion, down 53 percent from last year's $8.52 billion, on a 39 percent year-over-year reduction in total available seat miles or ASMs. Analysts were looking for revenues of $4.04 billion.

Passenger revenues fell 58.6 percent from last year to $3.18 billion. Cargo revenues more than doubled from last year.

In pre-market activity on Nasdaq, American Airlines shares were trading at $21.63, up 2.95 percent.

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