Earnings Outlook: American Airlines’ positive surprise bodes well for Delta and United, says Cowen analyst

by | Oct 12, 2022 | Stock Market

With the airlines earnings reporting season about to begin, American Airlines’ better-than expected outlook bodes well for Delta Air Lines and United Airlines, according to Cowen analyst Helane Becker. Before market open on Tuesday American Airlines Group Inc. 
announced that it expects third-quarter revenue to be up approximately 13% compared with the same period in 2019, before the pandemic hit. The company’s previous guidance was for a rise of 10% to 12%. Analysts surveyed by FactSet have forecast revenue consensus of $13.31 billion, which implies 11.7% growth.

American Airlines also raised its outlook for total revenue per available seat mile (TRASM) to 25%, compared with its previous guidance of up 20% to 24%. American Airlines said that cost per available seat mile (CASM) is expected to be up 14%, above its previously expected range of 12% to 14%. The carrier said third-quarter capacity was 686 billion available seat miles (ASM), down 9.6% from the same period in 2019, with previous guidance of a decline of 8% to 10%.  See Now: Airline stocks climb after American Airlines raises revenue outlook American Airlines, which reports its results before market open on Oct. 20., looks to have successfully navigated a choppy third-quarter operating environment, according to Becker. “Capacity is expected to be at the lower end of the prior range with non-fuel unit costs at the higher end,” she added. “This is an encouraging read-through to the other network carrie …

Article Attribution | Read More at Article Source

Share This