American Airlines Boosts FY23 Outlook As Q3 Results Top Estimates

(RTTNews) - American Airlines Group, Inc. (AAL) reported Thursday a net profit for the second quarter that almost tripled from last year, reflecting operating revenue growth and lower operating expense, primarily aircraft fuel expenses. Adjusted earnings per share and quarterly operating revenues topped analysts' estimates. The company also raised its outlook for the full-year 2023.

"Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter," said CEO Robert Isom.

American and its regional partners operated nearly 500,000 flights in the second quarter, with an average load factor of approximately 86 percent.

In the second quarter, American achieved its best-ever April, May and June controllable completion factors and delivered 11 more combined zero-cancellation days versus the same period last year.

For the second quarter, net income soared to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $1.92 per share, compared to $0.76 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.58 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter grew 4.7 percent to a record $14.06 billion from $13.42 billion in the same quarter last year, driven by continued broad-based demand strength and American's completion factor performance in the quarter. Analysts expected revenues of $13.74 billion for the quarter.

Looking ahead, the company expects adjusted earnings for the third quarter in a range of $0.85 to $0.95 per share, while the Street is looking for $0.90 per share.

For fiscal 2023, the company raised its adjusted earnings to a range of $3.00 to $3.75 per share from the prior forecast range of $2.50 to $3.50 per share. Analysts expect annual earnings of $3.08 per share.

"We will build on this momentum the rest of the year and continue to prioritize reliability, profitability, accountability and strengthening our balance sheet," Isom added.

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