American Airlines Group Inc (NASDAQ: AAL) shares opened more than 10% up on Thursday after the air carrier said its revenue more than doubled on a year-over-year basis in Q1, resulting in a narrower-than-expected loss. AAL also gave promising guidance for the future.
Key takeaways from American Airlines’ Q1 report
Lost $1.64 billion in the first quarter versus the year-ago figure of $1.25 billion.
Per-share loss came in at $2.52, an increase from last year’s $1.97.
Adjusted for one-time items, per-share loss stood at $2.32 in fiscal Q1.
Sales soared 122% YoY to $8.90 billion, as per the earnings press release.
FactSet consensus was for $2.39 of adjusted per-share loss on $8.79 billion in revenue.
Traffic was up 97.2%, load factor climbed to 74.4%, and capacity increased 57.6%.
Future outlook and CEO Isom’s remarks
For the current fiscal quarter, American Airlines forecasts capacity in the range of 92% to 94% of pre-pandemic levels. It expects revenue to beat 2019 levels by 6.0% to 8.0% in Q2, after revenue hit an all-time high in March. On CNBC’s “Squawk Box”, CEO Robert Isom said:
American Airlines has been around for 96 years and in Q2 we expect a record revenue in our history. It’s a tremendous turnaround. People have been cooped up for a long time. So, I view demand as being robust far into the future.
Much of the strength is in domestic travel so far, but the chief executive is confident that business and international will also recover soon.
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