American Guides to Another Quarterly Loss as Fuel Costs Swell $2.8 Billion
AAL sits 24% above its 52-week low of $10.09.
Summary
American posted a $269 million third-quarter net loss, or 41 cents a share, as fuel expenses jumped 68% to $4.6 billion at an average $3.85 a gallon. Revenue was the bright spot at a record $16.34 billion, up 19% and ahead of estimates, and the adjusted loss of 28 cents a share beat the 36 cents analysts expected. The problem is forward: management guided the fourth quarter to an adjusted loss of 50 cents to $1.10 a share on fuel averaging about $4.70 a gallon, which would add $2.8 billion of fuel expense, and now sees a full-year adjusted loss of $1 to $1.60 a share. CEO Robert Isom told analysts 2027 growth will decelerate considerably given elevated fuel prices. This follows the 8-K filed at 11:00 ET with the same results and the $1.05 billion EETC financings priced in late July, which add leverage to a balance sheet already carrying a widened stockholders' deficit. Shares reversed an early premarket drop to trade up 2.8% at $12.58, still down nearly a fifth this year.
At the time of this announcement, AAL was trading at $12.56 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $8.3B. 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 8 out of 10. Source: Dow Jones Newswires.