Wall Street’s Take on American Airlines (AAL) Q4 Earnings Metrics

Analysts expect American Airlines to report strong Q4 earnings and revenue growth, reflecting a positive outlook for the airline.

Wall Street’s Take on American Airlines (AAL) Q4 Earnings Metrics
Wall Street’s Take on American Airlines (AAL) Q4 Earnings Metrics

Fort Worth: Analysts are buzzing about American Airlines’ upcoming earnings report. They’re predicting earnings of $0.64 per share, which is a whopping 120.7% jump from last year. Revenue is expected to hit $13.42 billion, up 2.7% from the same quarter last year.

However, it’s worth noting that the earnings estimates have been revised down by 56.7% over the last month. This shows that analysts have been adjusting their expectations based on new information.

Before earnings are released, it’s crucial to look at these changes in projections. They can really influence how investors react to the stock. Studies have shown that earnings estimates often correlate with short-term price movements.

Investors usually check consensus estimates to see how the company performed. But digging into specific metrics can give a clearer picture of what’s going on.

So, let’s break down some key metrics that analysts are keeping an eye on for American Airlines.

For instance, they expect ‘Revenue-Passenger’ to reach $12.30 billion, which is a 2.4% increase year-over-year.

As for ‘Revenue-Other,’ analysts predict it will come in at $906.03 million, marking a 6.2% rise from last year.

When it comes to ‘Revenue-Cargo,’ the estimate is $204.71 million, showing a 2.9% increase year-over-year.

Looking at ‘Passenger revenue-Domestic,’ analysts think it will hit $8.87 billion, a 1.4% increase from last year.

For ‘Passenger revenue-Latin America,’ the estimate is $1.69 billion, which is a 1.2% rise.

And for ‘Passenger revenue-Total International,’ they expect $3.39 billion, reflecting a 3.8% increase.

In terms of ‘Passenger revenue-Pacific,’ the estimate stands at $295.57 million, a notable 12.8% increase.

Analysts also forecast that ‘Operating cost per ASM excluding net special items and fuel’ will be 13.96 cents, up from 13.24 cents last year.

For ‘Operating cost per ASM excluding net special items,’ the estimate is 17.47 cents, slightly down from 17.77 cents last year.

They predict the ‘Passenger load factor (percent)’ will be 84.3%, up from 83.6% last year.

As for the ‘Average aircraft fuel price including related taxes,’ analysts expect it to be $2.3 per gallon, down from $3.06 last year.

Finally, they estimate ‘Passenger revenue per ASM-Total’ will be 17.24 cents, a slight increase from 17.21 cents last year.

American Airlines shares have been performing well, up 9.9% over the past month, while the S&P 500 has dipped by 2.1%. With a Zacks Rank of #1 (Strong Buy), AAL is looking good for future performance.

Disclaimer: All images comply with fair use for educational and informational purposes. Sourced from public platforms. Have questions? Contact us.
Fact-Checking Policy: Accurate information is our focus. If errors are found, please let us know, and corrections will be made swiftly.