Two top airline stocks look more attractive with American Airlines (AAL) , and Southwest Airlines (LUV)  blowing past their third quarter earnings expectations on Thursday and were able to fly by sales estimates as well.More intriguing, American and Southwest Airlines were already benefiting from a positive trend of earnings estimate revisions over the last 30 days, landing their stocks a Zacks Rank #2 (Buy). American Q3 Results Attributed to what it called an aggressive shift in its sales and distribution ...

American Airlines Group Inc. AAL reported upbeat third-quarter financial results and updated its 2024 EPS outlook on Thursday.The airline reported third-quarter total operating revenue growth of 1.2% year-over-year to $13.647 billion, beating the consensus of $13.471 billion.  The adjusted operating margin stood at 4.7% compared to 5.4% a year ago. AAL reported adjusted EPS of 30 cents, down from 38 cents a year ago but above the consensus of 15 cents.For 2024, American Airlines now expects an adjusted EPS ...

Do you hold American Airlines common stock? If so, please visit Amercan Airlines Group Inc. Shareholder Investigation or contact Investor Relations Manager Peter Allocco at (212) 951- 2030 or pallocco@bernlieb.com to discuss your rights. NEW YORK, Oct. 25, 2024 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential breaches of fiduciary duty by the board of directors of American Airlines Group Inc. ("American Airlines" or the "Company") (NASDA ...

After performing impressively in September, volatility returned to grip the U.S. equity markets in October. The hotter-than-expected inflation reading for September has reignited recession fears. In September, the consumer price index rose 0.2% month over month, beating the consensus estimate of a 0.1% rise. These matters have not improved as geopolitical woes in the Middle East have intensified.Given these headwinds, investors are well-advised to get help from brokers, who are experts in the field of inves ...

American Airlines’ (AAL) third-quarter 2024 earnings (excluding 53 cents from non-recurring items) of 30 cents per share beat the Zacks Consensus Estimate of 13 cents. In the year-ago quarter, AAL reported earnings of 38 cents per share. The year-over-year bottom-line contraction was mainly due to high labor costs. Operating revenues of $13.65 billion surpassed the Zacks Consensus Estimate of $13.49 billion and increased 1.2% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Cal ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

For the quarter ended September 2024, American Airlines (AAL) reported revenue of $13.65 billion, up 1.2% over the same period last year. EPS came in at $0.30, compared to $0.38 in the year-ago quarter.The reported revenue represents a surprise of +1.16% over the Zacks Consensus Estimate of $13.49 billion. With the consensus EPS estimate being $0.13, the EPS surprise was +130.77%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...

| --- | --- | |-------|------------------------------| | | | | | American Airlines Group Inc. | | | THIRD- QUARTER HI YANGIAL | | | October 24, 2024 | Forward-looking statements Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward- looking statements may be identified by words ...

Financial Data and Key Metrics - The company reported a Q3 adjusted pretax profit of $271 million, exceeding guidance, with adjusted earnings per diluted share of $0.30 [6] - Q3 revenue reached a record $13.6 billion, up 1.2% YoY, with unit revenue down 2% YoY on 3.2% more capacity [14] - Adjusted EBITDAR margin was 11.1%, and adjusted operating margin was 4.7% [14] - Unit cost, excluding net special items and fuel, increased by 2.8% YoY, driven by disruptions from hurricanes and the CrowdStrike outage [14] - Free cash flow for Q3 was approximately $170 million, bringing the total for the first three quarters to $2.4 billion [16] Business Line Performance - Domestic PRASM declined by 3.1% YoY, but flown yields in September were positive YoY [7] - Long-haul international unit revenue grew YoY, driven by strength in the Atlantic and South America markets [7] - Premium revenue increased by 8% YoY on 3% more capacity, with premium cabin paid load factor up over 4 points YoY [8] - Loyalty revenues grew by 5% YoY, with AAdvantage members contributing 72% of premium cabin revenue [8] - Managed business revenue increased by 6% YoY, reflecting strength in corporate demand [8] Market Performance - Domestic capacity growth decelerated from July, improving the balance of supply and demand [7] - Short-haul Latin RASM showed the largest sequential improvement from Q2 to Q3, driven by better industry supply conditions [7] - Transatlantic performance remained strong, with positive YoY unit revenue growth [7] Strategy and Industry Competition - The company is focused on regaining corporate and agency revenue share, aiming for full restoration by the end of 2025 [9][12] - New incentive-based agreements with TMCs and agencies have been established, with over half of the largest partners already signed [10] - The relaunch of the corporate experience program and amendments with top corporate customers aim to enhance customer benefits and loyalty [10] - The company is reengineering its business to drive efficiency, targeting $400 million in cost savings for 2024 [17] Management Commentary on Operating Environment and Outlook - The company faced operational challenges from hurricanes and the CrowdStrike outage, which reduced Q3 earnings by approximately $90 million [6] - Management expects Q4 TRASM to decline by 1% to 3%, with full-year TRASM down 3% to 4% versus 2023 [17] - Q4 capacity is expected to grow by 1% to 3%, with full-year capacity up 5% to 6% [16] - The company forecasts Q4 adjusted operating margin between 4.5% and 6.5%, with full-year adjusted EPS of $1.35 to $1.60 [18] Other Key Information - The company ended Q3 with $11.8 billion in total available liquidity and is on track to reduce total debt by at least $13 billion from peak levels by year-end [16] - Aircraft CapEx for 2024 is expected to be $1.7 billion, with total CapEx at $2.6 billion, a $300 million reduction from July guidance [15] - The company plans to deliver 17 new aircraft in 2024, with 7 expected by year-end [15] Q&A Session Summary Question: Revenue Growth and Corporate Recovery - The company is confident in regaining GDP-style revenue growth, driven by corporate managed business growth of 6% in Q3 and ongoing efforts to restore corporate and agency revenue share [23][24] - Corporate and agency indirect revenue share has improved from 11% below historical levels to 7% below, with further recovery expected [24] Question: Co-brand Credit Card Negotiations - Negotiations for the co-brand credit card program are ongoing, with progress described as being in the "bottom of the seventh inning" [27] Question: Q4 RASM Guidance - Q4 RASM is expected to decline by 1% to 3%, with strong demand in October and December offset by softness around the election and Halloween [29] Question: 2025 Capacity and CASM - 2025 capacity is expected to grow in the low-single digits, with CASM pressures primarily from salary and benefit increases due to new labor agreements [30][31] Question: Distribution Channel Recovery - The company estimates a $1.5 billion revenue gap from lost corporate and agency share, with progress expected to accelerate into 2025 [33] Question: Fleet Reconfiguration - The company plans to reconfigure 777-300s starting in 2025, with no significant impact on Q4 capacity [35] Question: Fuel and Core Performance - Q4 core performance is expected to be flat YoY, with fuel prices forecasted between $2.20 and $2.40 per gallon [37] Question: Network Strategy - The company is focused on leveraging its existing network and partnerships, with no immediate plans for significant network changes [39][40] Question: Product and Customer Experience - The company is investing in premium seating, Wi-Fi, and lounge experiences to enhance customer satisfaction and drive revenue growth [49][50][51] Question: Corporate Relationship Recovery - The company is making progress in renegotiating corporate contracts, with positive feedback from corporate customers and agencies [54][55] Question: Fleet Delays and Utilization - Fleet delays are impacting 2025 capacity planning, but the company can push utilization if needed [59][60] Question: Maintenance and Technology - The company is exploring new technologies, including drones and AI, to improve maintenance efficiency and operational performance [64][65][66] Question: Loyalty Program Adjustments - The company is continuously evaluating its loyalty program to better engage customers and enhance value [69] Question: Free Wi-Fi and Revenue Impact - The company is not concerned about revenue headwinds from potential free Wi-Fi offerings, as it plans to expand coverage and remain competitive [71] Question: CapEx and Debt Reduction - The company remains committed to its $15 billion debt reduction goal, with potential for further debt paydown depending on free cash flow and liquidity [73] Question: AI and Efficiency - The company is investing in AI and technology to drive efficiency, with $400 million in cost savings targeted for 2024 and further improvements expected in 2025 [77][78][79] Question: Corporate Strategy Missteps - The company acknowledged missteps in its sales and distribution strategy, leading to revenue declines, but is now focused on regaining customer trust and revenue share [82][83] Question: Cabin Refurbishment and Election Impact - Cabin refurbishment for 777-300s and 321s is ongoing, with delays due to supply chain constraints [87] - The company expects a temporary lull in bookings around the election and Halloween, but overall demand remains strong [86]

Thursday, October 24, 2024Pre-market futures are mixed on a plethora of data this morning. Weekly Jobless Claims and some key Q3 earnings reports from a wide array of industries are having some effect here, as are the pending news items in the next couple weeks, culminating in the General Election on November 5th and a new Fed decision on interest rates on November 7th.The Dow is -71 points at this hour, balanced somewhat by the +27 points on the S&P 500 and +181 points on the Nasdaq. Bond yields continue t ...