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. 
AAL,
+1.74%
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 …

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