On Thursday, American Airlines Group Inc. (AAL) presented an insightful earnings outlook for the second quarter, having reported a larger-than-anticipated loss in its first quarter. Despite this, the company was able to leverage higher revenues. Additionally, they have sustained their fiscal projections until the year 2024.
In the early pre-market trading on Nasdaq, shares of American Airlines were up by approximately 4.7%, trading at $14.60.
The company predicts its adjusted earnings per share for the second quarter will range from $1.15 to $1.45. According to data gathered by Thomson Reuters, the average prediction among analysts is that the company will report earnings of $1.18 per share for the second quarter. These estimates usually exclude any extraordinary items.
This forecast was based on current demand trends and the existing fuel price prediction.
Moving forward into fiscal 2024, American Airlines continues to foresee its adjusted earnings per share ranging between $2.25 and $3.25. Analysts expect that the company will report earnings of $2.35 per share.
Reflecting on the first quarter, the net loss amounted to $312 million, compared to the previous year's profit of $10 million. Losses per share were at $0.48, a significant change compared to a profit of $0.02 the previous year.
After adjusting for certain factors, the first quarter's net loss was $226 million or $0.34 per share, as opposed to the prior year's profit of $33 million or $0.05 per share.
Nevertheless, total operating revenues saw an increase of 3.1% to reach $12.57 billion, up from last year's $12.19 billion.
Forecasts had estimated a loss of $0.29 per share on revenues of $12.6 billion for the quarter.
