American Airlines stock returns to profitability with demand booming
American Airlines Group (NASDAQ:AAL) slipped past profit expectations on revenue growth of 37% to $12.2B in Q1. The strong revenue performance was driven by the continued strength of the demand environment.
Domestic and short-haul international revenue continue to perform well during the quarter, and the airline pointed to noticeable strength in long-haul international demand and yield performance this year.
Passenger revenue growth of 42% was far ahead of the 10.6% increase in operating expenses during the quarter. Total revenue per available seat mile improved 25.4% to $0.1875. AAL’s load factor was 80.0% vs. 74.4% a year ago. American Airlines (AAL) returned to a profit with operating income of $438M vs. a loss last year of $1.72B.
Looking ahead, AAL guided for Q2 adjusted earnings per diluted share to be between $1.20 and $1.40 vs. consensus of $1.04. American continues to expect its full-year 2023 adjusted earnings per diluted share to be between $2.50 and $3.50 vs. consensus of $2.35.
Shares of AAL fell 0.55% in premarket trading to $12.67.
