==American Airlines (AAL) cuts Q2 profit outlook, says chief commercial officer is leaving

• American Airlines slashed its sales outlook on Tuesday and now expects unit revenues to fall as much as 6% in the second quarter from a year earlier.
• The company has also let go of its chief commercial officer, Vasu Raja.

American Airlines lowers Q2 EPS, adjusted operating margin, and TRASM guidance in SEC filing 

• Co lowers guidance for Q2 (Jun), sees EPS of approximately $1.00-$1.15, excluding non-recurring items, vs. prior guidance of approximately $1.15-$1.45, and below the $1.30 FactSet Consensus.
  • Sees adjusted operating margin of approximately 8.5%-10.5% vs. prior guidance of 9.5%-11.5%.
  • Sees TRASM of approximately -5% to -6% compared to prior guidance of down 1% to 3%.
  • Reaffirms available seat miles guidance of +7% to +9%.
  • Sees CASM-ex of flat to +1% compared to prior guidance of +1% to +3%.
  • Average fuel price of $2.70-2.80 compared to prior guidance of $2.75-$2.95.

American Airlines said on Tuesday that it is slashing its second-quarter profit outlook and that its Chief Commercial Officer Vasu Raja will step down in June, prompting shares of the carrier to plummet by more than 7% in after-hours trading.

The company said it is expecting its unit revenue to be down between 5% and 6% when compared to a year ago. It had previously forecasted that revenue would decline between 1% and 3%.

American also updated its adjusted earnings per share estimate, and said it expects that metric to be between $1.00 and $1.15 during the period, down from its previous range of $1.15 and $1.45 earnings per share.

On Raja’s departure, the Fort Worth, Texas-based airliner said that he had served as the company’s CCO since April 2022. Raja joined American in 2004 and held a number of positions across sales, planning, and revenue management, the company said.

==American Airlines (AAL) reported earnings on Thur 25 Jan 24 (b/o)

 

American Airlines beats by $0.18, reports revs in-line; guides Q1 EPS in-line; guides FY24 EPS above consensus

• Reports Q4 (Dec) earnings of $0.29 per share, excluding non-recurring items, $0.18 better than the FactSet Consensus of $0.11; revenues fell 1.0% year/year to $13.06 bln vs the $13.01 bln FactSet Consensus.
• Available seat miles (ASM) up 5.8%, Total revenue per ASM (TRASM) down 6.4%, Operating cost per ASM excluding net special items and fuel (CASM-ex) up 4.2%.
  
• Co issues in-line guidance for Q1, sees EPS of ($0.35)-($0.15) vs. ($0.22) FactSet Consensus.
• Co issues upside guidance for FY24, sees EPS of $2.25-$3.25 vs. $2.14 FactSet Consensus.

=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.

=American Airlines (AAL) reported earnings on Fri 27 Jan 2017 (b/o)

American Airlines beats by $0.57, reports revs in-line; Approves $2.0 bln repurchase program:

• Reports Q4 (Dec) earnings of $1.48 per share, excluding non-recurring items, $0.57 better than the Capital IQ Consensus of $0.91; revenues rose 1.7% year/year to $9.79 bln vs the $9.74 bln Capital IQ Consensus.
• Total revenue in the fourth quarter was $9.8 billion, an increase of 1.7 percent versus the fourth quarter 2015 on a 0.4 percent increase in total available seat miles (ASMs).
• TRASM was 14.90 cents, up 1.3 percent versus the fourth quarter 2015, the first year-over-year increase since the fourth quarter of 2014.
• Total operating expenses in the fourth quarter were $9.0 billion, up 5.4 percent compared to the fourth quarter 2015, due primarily to a 17.4 percent increase in salaries and benefits expense, which includes the impact of the Company's recent labor agreements and a $57 million accrual for the Company's profit sharing program.
• Fourth quarter 2016 mainline cost per available seat mile (CASM) was 12.93 cents, up 5.7 percent on a 0.7 percent reduction in mainline ASMs versus the fourth quarter 2015.
• Share Repurchase
  • The Company has now completed its $2.0 billion April 2016 share repurchase authorization and returned more than $9.6 billion to stockholders through share repurchases and dividends since mid-2014. In addition, the Company's Board has approved a new $2.0 billion share repurchase authorization that will expire December 31, 2018.

=American Airlines (AAL) reported earnings on Fri 22 Jul 2016 (b/o)

American Airlines beats by $0.09, reports revs in-line :

• Reports Q2 (Jun) earnings of $1.77 per share, excluding non-recurring items,$0.09 better than the Capital IQ Consensus of $1.68; revenues fell 4.3% year/year to $10.36 bln vs the $10.33 bln Capital IQ Consensus on a 1.9 percent increase in total available seat miles (ASMs).
• Second quarter 2016 revenue was hurt by competitive capacity growth, continued global macroeconomic softness and foreign currency weakness.
• Consolidated passenger revenue per ASM (:PRASM) was 12.71 cents, down 6.3 percent versus the second quarter of 2015. Consolidated passenger yield was 15.42 cents, down 5.3 percent year-over-year.
• Pretax margin 15.4% vs. 17.2% last year.
• On July 13, co improved Q2 PRASM guidance to down 6-7% from down 6-8%, preannounced pretax margin 14-16%.

=American Airlines (AAL) reported earnings on Fri 22 Apr 2016 (b/o)

American Airlines beats by $0.06, reports revs in-line; announces new $2 bln buyback :

• Reports Q1 (Mar) earnings of $1.25 per share, excluding non-recurring items,$0.06 better than the Capital IQ Consensus of $1.19; revenues fell 4.0% year/year to $9.44 bln vs the $9.44 bln Capital IQ Consensus, on a 3.6 percent increase in total available seat miles (ASMs).
• Consolidated passenger revenue per ASM (:PRASM) was 12.43 cents, down 7.5%. Consolidated passenger yield was 15.62 cents, down 7.1 percent year-over-year.
• Co lowered PRASM to down 7-8% from down 6-8% on April 11
• Pretax margin 12.9% vs. 12-14% guidance.
• Company returned more than $1.6 billion to its stockholders through the payment of $61 million in quarterly dividends and the repurchase of $1.6 billion of common stock, or 39.3 million shares, at an average price of $39.76 per share.
• The Company's Board of Directors has authorized a new $2.0 billion share repurchase program that will expire at the end of 2017. Since the Company began its capital return program, the Company's Board of Directors has authorized a total of $9.0 billion of share repurchases.