American Airlines Stock Down 8% As Weak Domestic Demand Dims Outlook https://t.co/wawUUYJOh5 ...

American Airlines Stock Down 8% As Weak Domestic Demand Dims Outlook https://t.co/ebMVEBoBDW https://t.co/ebMVEBoBDW ...

Market Overview - Pre-market futures are mixed but showing signs of weakness, following record high closes on the S&P 500, with profit-taking being a potential factor [1] - The tech-heavy Nasdaq is up by 42 points (+0.18%), while the Dow is down 300 points (-0.67%) due to UnitedHealth's DOJ probe, and the S&P 500 is nearly flat at -0.004% [2] Job Market Data - Initial Jobless Claims have decreased for six consecutive weeks, with the latest figure at 217K, the lowest in 14 weeks, down from 250K in early June [3] - Continuing Claims are reported at 1.955 million, slightly above the previous week's revised figure of 1.951 million, indicating a stall just below the 2 million mark [4] Q2 Earnings Reports - American Airlines (AAL) reported earnings of 95 cents per share, exceeding expectations by +20.25%, but shares fell -6% due to warnings of softer demand leading to a Q3 loss [5] - Honeywell (HON) surpassed earnings expectations with $2.75 per share, a +4.2% increase, and revenues of $10.35 billion, but shares are down -2.7% as the company plans to split into three segments by 2026 [6] - Union Pacific (UNP) reported earnings of $3.03 per share, beating expectations by +4.84%, with revenues of $6.2 billion, but shares are down -3% ahead of the opening bell [7] Economic Indicators - Upcoming S&P flash Services and Manufacturing PMI for July are expected to show slight growth in Services to 53.2 and a dip in Manufacturing to 52.7, both remaining above the growth threshold of 50 [8] - New Home Sales for June are anticipated to rise to 645K units, up from 623K the previous month, although existing home sales were disappointing, falling below 4 million for the first time since September [9] Future Earnings Reports - Q2 earnings reports will continue after the market closes, with Intel (INTC) and Deckers Outdoor (DECK) among the companies set to report [10]

American Airlines Stock Down 7% As Weak Domestic Demand Dims Outlookhttps://t.co/Q6O9X33x1R https://t.co/yWKrIYg2gh ...

Core Insights - American Airlines (AAL) reported second-quarter 2025 earnings of 95 cents per share, exceeding the Zacks Consensus Estimate of 79 cents, but down from $1.09 in the same quarter last year [1][10] - Operating revenues reached $14.4 billion, surpassing the Zacks Consensus Estimate of $14.29 billion and the previous year's figures [1][10] Revenue Breakdown - Passenger revenues, which constitute 91.1% of total revenues, decreased by 0.6% year-over-year to $13.1 billion, impacted by a slowdown in domestic leisure demand [2] - Cargo revenues increased by 8.2% to $211 million, exceeding the estimate of $204.4 million [2] - Other revenues rose by 13% to $1.06 billion, surpassing expectations of $973 million [2] Key Metrics - Total revenue per available seat mile decreased to 18.54 cents from 19.05 cents year-over-year [3] - Passenger revenue per available seat mile fell by 3.6% to 16.9 cents, slightly above the expectation of 16.89 cents [3] - Consolidated yield decreased by 1.5% to 19.96 cents, ahead of the estimate of 19.76 cents [3] Capacity and Traffic - Consolidated traffic increased by 0.9% year-over-year, while capacity expanded by 3.2% [4] - Consolidated load factor decreased by 1.9 points to 84.7%, lower than the expected 85.5% [4] Operating Costs - Total operating costs rose by 2.4% year-over-year to $13.26 billion, with salaries, wages, and benefits increasing by 10.9% to $4.4 billion due to a labor deal with pilots [5] - Aircraft fuel and tax expenses decreased by 13% to $2.67 billion, with the average fuel price per gallon dropping to $2.29 from $2.70 a year ago [5] Future Outlook - Management anticipates a 2-3% increase in capacity for Q3 2025 compared to Q3 2024, with total revenues expected to either decline by 2% or increase by up to 1% year-over-year [7] - AAL projects a loss per share of 10-60 cents for Q3, influenced by sluggish domestic travel demand [8] - For the full year 2025, AAL expects a loss of 20 cents or earnings of up to 80 cents per share, contingent on domestic demand [9]

We're pleased first off with the beat on the second quarter. Team did a wonderful job in really challenging conditions and so we're we're pleased with that. As we look out into the third quarter, it really is just getting the consumer, you know, back in the game. The uncertainty that we had seen, you know, certainly in the second quarter really still impacted July to a a great extent.We've got that on the books today. So, we know what July is shaping up to be. It's not a great month.and then compounded with ...

Market Overview - Pre-market futures are mixed but showing signs of weakening, following record high closes on the S&P 500, with profit-taking being a potential factor [1] - The tech-heavy Nasdaq is up by 42 points (+0.18%), while the Dow is down by 300 points (-0.67%) due to UnitedHealth's DOJ probe [2] Job Market Data - Initial Jobless Claims decreased to 217K, marking the lowest level in 14 weeks and the sixth consecutive week of decline [3] - Continuing Claims are reported at 1.955 million, slightly above the previous week's revised figure, indicating a stall just below 2 million [4] Q2 Earnings Reports - American Airlines (AAL) reported earnings of 95 cents per share, exceeding expectations by +20.25%, but shares fell -6% due to warnings of softer demand [5] - Honeywell (HON) surpassed earnings expectations with $2.75 per share, a +4.2% increase from the previous year, but shares are down -2.7% as the company plans to split into three segments [6] - Union Pacific (UNP) reported earnings of $3.03 per share, beating expectations by +4.84%, with revenues of $6.2 billion also exceeding forecasts, though shares are down -3% [7] Economic Indicators - S&P flash Services PMI for July is expected to rise to 53.2, while Manufacturing PMI is anticipated to dip to 52.7, both remaining above the growth threshold of 50 [8][9] - New Home Sales for June are projected at 645K units, an increase from 623K in the previous month, despite disappointing Existing Home Sales figures [10] Upcoming Earnings Reports - Intel and Deckers Outdoor are scheduled to report their Q2 earnings after the market closes today [11]

Financial Performance - For the quarter ended June 2025, American Airlines reported revenue of $14.39 billion, a 0.4% increase year-over-year, and EPS of $0.95, down from $1.09 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $14.29 billion by 0.73%, while the EPS surprise was +20.25% compared to the consensus estimate of $0.79 [1] Key Metrics - Operating cost per ASM excluding net special items and fuel was 13.59 cents, slightly below the average estimate of 13.64 cents [4] - Passenger load factor was 84.7%, marginally below the average estimate of 84.8% [4] - Average aircraft fuel price was $2.29 per gallon, lower than the estimated $2.38 per gallon [4] Revenue Breakdown - Domestic passenger revenue was $9.16 billion, below the average estimate of $9.25 billion, representing a year-over-year decline of 2% [4] - Total international passenger revenue was $3.96 billion, exceeding the average estimate of $3.84 billion, with a year-over-year increase of 2.7% [4] - Revenue from cargo was $211 million, surpassing the estimated $201.19 million, reflecting an 8.2% increase year-over-year [4] Stock Performance - Shares of American Airlines have returned +14.7% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

American Airlines reissued full-year adjusted earnings guidance, setting a lower target than it had earlier in the year before tariffs and a domestic travel slowdown prompted major airlines to withdraw their outlooks https://t.co/56x3uWPV6Q ...

American Airlines CEO Robert Isom on Thursday said recent weather-related delays and cancellations have hit the carrier "harder than anyone," but that adding more air traffic controllers will eventually help address the issue. ...