Earnings
Home›Earnings›Results›American Airlines shares edge up after record quarterl…
American Airlines shares edge up after record quarterly revenue
Q2 revenue rose 16.3% year over year to $16.7 billion, but profit fell about 88% and full-year guidance was trimmed to a loss of $0.65 per share.
American Airlines (AAL) shares rose in recent sessions after the airline posted its highest quarterly revenue in company history, driven by increased demand across domestic and international routes. Yahoo Finance/Barchart.com reports that Q2 revenue climbed 16.3% year over year to $16.7 billion, topping consensus estimates.
The topline gain did not translate into stronger profits, with the airline reporting that its quarter profit was down about 88%. Higher jet fuel costs tied to the U.S.-Iran conflict are expected to weigh on net income, and American Airlines trimmed its full-year guidance to a loss of $0.65 per share at the lower end of its range.
The company is also continuing fleet upgrades, accelerating fleet retrofit and taking delivery of Boeing 787-9 and Airbus A321XLR aircraft. Yahoo Finance/Barchart.com adds that AAdvantage loyalty enrollments grew more than 30% year over year, while the airline added routes in Europe and Latin America and had already booked about 60% of its Q3 revenue.
Wall Street’s outlook remains constructive, with AAL’s consensus rating at Moderate Buy and a mean price objective around $19.73, implying potential upside versus current levels. Yahoo Finance/Barchart.com also notes that options pricing is largely positive, with the upper price on contracts expiring in late November set at $17.51, pointing to a possible 20% rally from here.