American Airlines Posts 41-Cent Loss Per Share for Third Quarter
AAL sits 20% above its 52-week low of $10.09.
Summary
American Airlines reported a third-quarter adjusted loss of 28 cents per share. That extends a rough stretch: Q2 revenue of $16.7B was nearly wiped out by a $2.2B fuel cost surge, and the carrier has already flagged roughly $1 billion in fuel headwinds with possible capacity cuts. Third-quarter fuel expense rose $1.9B, or 67.5%, with the carrier paying an average of $3.85 per gallon, and it sees fourth-quarter average fuel price at about $4.70 per gallon, nearly double a year ago. The company also raised $1.05 billion in EETC financing in late July, adding leverage while earnings stay under pressure, and ended the third quarter with $11.8B in total available liquidity. It expects fourth-quarter revenue up 19.5%-22.5%. The loss confirms the fuel-cost squeeze is still hitting the bottom line.
At the time of this announcement, AAL was trading at $12.08 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $8.1B. The 52-week trading range was $10.09 to $18.79. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.