=American Airlines (AAL) reported earnings on Thur 27 April 2017 (b/o)

American Airlines beats by $0.04, reports revs in-line; expects Q2 TRASM to rise approximately 3.0-5.0% :

• Reports Q1 (Mar) earnings of $0.61 per share, $0.04 better than the Capital IQ Consensus of $0.57; revenues rose 2.0% year/year to $9.62 bln vs the $9.62 bln Capital IQ Consensus.
• Total revenue per available seat mile increased by 3.1%, on a 1.1% decline in total available seat miles
• Strong demand and improving yields drove a 2.0% increase in total revenue
• Expects Q2 TRASM to rise approximately 3.0-5.0%
• Deferred the first delivery of Airbus A350 XWBs from 2018 to 2020, delaying capital expenditures and providing additional widebody capacity flexibility
• Announced an unprecedented step to increase hourly base pay for the airline's crewmembers outside of contract negotiations, bringing those workgroups' base pay levels to the top of the industry, consistent with other American Airlines workgroups
• "While it's still early, the initial results from our new Basic and Premium Economy products are encouraging. Approximately 50 percent of customers who are presented with a choice for Basic Economy end up choosing a Main Cabin fare, showing that they understand their options and are choosing the ticket that's the right fit for their travel," said Robert Isom, American Airlines President.
• "We also moved quickly on the opportunity to add two new slot pairs at Heathrow, which we will use to improve service to and from one of the world's most important business markets," Isom said.
• "We expect second-quarter TRASM to rise approximately 3.0 to 5.0 percent, which reflects improving customer demand in both corporate and leisure travel. We also expect second-quarter pre-tax margin excluding special items to be between 11.0 and 13.0 percent," Isom said.