American Airlines beats fourth-quarter profit expectations as higher fares buoy revenue

Employees of American Airlines help check in passengers at Ronald Reagan Washington National Airport on January 11, 2023 in Arlington, Virginia.

Alex Wong | Getty Images

American Airlines‘ fourth-quarter profit beat analysts’ expectations as strong travel demand and high fares buoyed results during a turbulent holiday season.

Shares of American were up about 2% in premarket trading on Thursday.

Here’s how American Airlines performed in the fourth quarter compared with what Wall Street anticipated, based on an average of analysts’ estimates compiled by Refinitiv:

  • Adjusted earnings per share: $1.17 versus an expected $1.14
  • Total revenue: $13.19 billion versus expected $13.20 billion

For the three months ended Dec. 31, the company reported net income of $803 million, or $1.14 per share, unadjusted — a stark improvement from a loss of $931 million, or $1.44 per share, during the same period a year earlier.

Quarterly revenue of $13.19 billion was up 16.6% from the same period in 2019, before the pandemic stymied travel. American earlier this month raised its revenue and profit estimates for its fourth quarter.

For the full year, American reported $127 million in net income. It was the first full-year profit for the carrier since 2019, CEO Robert Isom said in a message to employees Thursday morning.

As the airline heads into its first quarter of 2023, it said it expects capacity to be 8% to 10% higher than the first quarter of 2022 and projects that it will break even on earnings per share.

Airline executives at Delta and United were similarly upbeat about 2023 bookings despite concerns about layoffs at major U.S. companies and economic weakness.

American is scheduled to hold a call with analysts and media at 8:30 a.m., when they are likely to face questions about costs in 2023, the state of corporate travel demand and the potential for new labor contracts with pilots and flight attendants this year.

This is breaking news. Please check back for updates.

For More Updates & Stories Please Subscribe to Our Website by Pressing Bell Button on the left side of the page.

Source link

For More Updates & Stories Please Subscribe to Our Website by Pressing Bell Button on the left side of the page.

Leave a Comment