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X @Investopedia
Investopedia· 2025-07-24 22:30
American Airlines shares are falling in intraday trading Thursday after the carrier's restored earnings projection for 2025 lagged its earlier forecasts and Wall Street analyst estimates. https://t.co/ctvMiEWToQ ...
Stock Market Today: American Airlines Drops 9.6% After Weak Q3 Guidance
The Motley Fool· 2025-07-24 21:07
Core Viewpoint - American Airlines' stock experienced a significant decline of 9.62% to close at $11.46, primarily due to management's cautious outlook for Q3, overshadowing a strong second-quarter performance [1] Company Performance - American Airlines reported a robust second-quarter performance, but the cautious guidance for Q3 led to a sharp sell-off in its stock [1] - The stock opened at $11.79 and traded within a range of $11.33 to $11.84, indicating volatility in response to the earnings report [2] Market Reaction - Trading volume surged to approximately 119.4 million shares, reflecting aggressive institutional repositioning as traders exited positions ahead of weaker near-term forecasts [2] - The decline in American Airlines' stock occurred despite modest gains in broader markets, with the S&P 500 rising 0.07% and the Nasdaq Composite advancing 0.18%, highlighting that the sell-off was driven by industry-specific concerns rather than systemic market pressures [1] Industry Context - Airline peers also experienced declines, with Delta Air Lines falling 2.27% and United Airlines dropping 0.77%, indicating a broader concern regarding travel demand within the industry [1]
Is American Airlines Stock Too Cheap to Ignore After Beating Q2 Expectations?
ZACKS· 2025-07-24 21:01
Core Viewpoint - American Airlines (AAL) stock experienced a decline of up to 10% despite exceeding Q2 earnings expectations, as the company provided a cautious outlook and narrowed its full-year EPS guidance amid ongoing travel demand uncertainty [1][7]. Financial Performance - In Q2, American Airlines reported sales of $14.39 billion, slightly up from $14.33 billion year-over-year and above estimates of $14.28 billion [3]. - The company's Q2 earnings per share (EPS) were $0.95, surpassing expectations of $0.79 by 20%, although this was a decrease from $1.09 EPS a year ago [3]. - The company reinstated but lowered its full-year EPS guidance to a range of a loss of $0.20 to a profit of $0.80, with a midpoint of $0.30, significantly lower than the previous forecast of $1.70 to $2.70 per share [7]. Market Dynamics - American Airlines benefited from strong international and premium cabin demand, particularly in the Atlantic markets, where passenger unit revenue increased by 5% year-over-year [4]. - The airline's loyalty program saw a 7% increase in Active AAdvantage accounts and a 6% rise in spending on co-branded credit cards, contributing to margin growth [5]. Valuation Metrics - Currently, American Airlines stock trades at 17.4 times forward earnings, which is a discount compared to the S&P 500's 24.5 times but higher than the Zacks Transportation-Airline Industry average of 14.5 times [9]. - The price-to-sales ratio for American Airlines is notably low at $0.15 for every dollar earned, compared to Delta and United Airlines, which are at $0.50 or more [10]. Outlook - The company anticipates an adjusted loss of $0.10 to $0.60 per share in Q3, citing weak domestic demand in July [8]. - Despite being the largest airline globally in terms of passengers and daily flights, the cautious outlook regarding EPS guidance suggests that better buying opportunities may arise in the future [12][14].
JETS: Seasonal Headwinds In Play, Muted 'Big 4' YTD Performances
Seeking Alpha· 2025-07-24 19:40
Airline Industry Performance - Major airline stocks have struggled in 2025, with American Airlines (AAL) shares down more than 33% year-to-date [1] - Southwest Airlines (LUV) has also seen a decline, slipping into the red for the year [1]
X @Forbes
Forbes· 2025-07-24 19:28
American Airlines Stock Down 8% As Weak Domestic Demand Dims Outlook https://t.co/wawUUYJOh5 ...
X @Forbes
Forbes· 2025-07-24 16:15
American Airlines Stock Down 8% As Weak Domestic Demand Dims Outlook https://t.co/ebMVEBoBDW https://t.co/ebMVEBoBDW ...
Pre-Markets Mixed Despite Strong Earnings Results
ZACKS· 2025-07-24 16:11
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]
X @Forbes
Forbes· 2025-07-24 16:05
American Airlines Stock Down 7% As Weak Domestic Demand Dims Outlookhttps://t.co/Q6O9X33x1R https://t.co/yWKrIYg2gh ...
American Airlines Beats on Q2 Earnings & Revenues, Expects Loss in Q3
ZACKS· 2025-07-24 16:01
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]
American Airlines CEO Robert Isom on softened domestic travel
CNBC Television· 2025-07-24 16:00
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 ...