American Airlines stock rises as earnings point to strong full-year outlook

Core Insights - American Airlines reported a net loss of $114 million for Q3, which was better than the expected loss of $140 million, attributed to weather delays and cancellations [2][4] - Despite the loss, the airline's revenue of $13.69 billion exceeded analyst expectations of $13.63 billion [2] - The company projects earnings of 45 to 75 cents per share for Q4, significantly higher than the 31 cents forecasted by analysts, and full-year earnings guidance is now between 65 to 95 cents per share, compared to the expected 43 cents [3] Financial Performance - Q3 net loss: $114 million (17 cents per share), compared to a loss of $149 million (23 cents per share) in the same quarter last year [2] - Revenue for Q3: $13.69 billion, slightly above the expected $13.63 billion [2] - Q4 earnings projection: 45 to 75 cents per share, above the analyst estimate of 31 cents [3] - Full-year earnings guidance: 65 to 95 cents per share, compared to the expected 43 cents [3] Market Reaction - Following the positive earnings projections, American Airlines' stock gained 4% in pre-market trading [3] - Year-to-date performance shows American Airlines' stock is down 29%, while Delta is up 1.5% and United shares are largely flat [5] Industry Context - American Airlines' loss contrasts with Delta Air Lines, which reported record revenue and healthy profit margins, and United Airlines, which beat earnings projections but fell short on revenue [4] - Alaska Airlines is also expected to report a loss this quarter, attributed to similar weather issues [4]