American Airlines Reports Q4 Thursday: What To Watch

American Airlines Group, Inc. AAL is set to report its fourth-quarter financial results on Thursday before the opening bell. Here's a look at what to look for in the report. 

What To Watch: After posting a $149 million net loss in the third quarter, investors will be keen to see if American Airlines has returned to profitability. The company’s updated guidance suggests improved financial performance compared to earlier expectations. 

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American Airlines raised its Q4 outlook in December and now expects earnings in the range of 55 cents to 75 cents per share, versus its prior guidance of 25 cents to 50 cents.

According to estimates from Benzinga Pro, analysts expect the company to report earnings of 64 cents per share and quarterly revenue of $13.4 billion. 

Investors will also be interested in American Airlines’ operational metrics, including passenger load factors, capacity and fuel costs, which can significantly impact profitability.

The company reported a passenger load factor of 86.6% and average aircraft fuel price of $2.50, including related taxes (dollars per gallon) in the third quarter. 

Last week, B of A Securities analyst Andrew Didora upgraded American Airlines stock from Underperform to Neutral and raised the price target from $12 to $20 heading into its fourth-quarter earnings release. 

AAL Price Action: According to Benzinga Pro, American Airlines shares are down 0.59% at $18.53 at the time of publication Wednesday. 

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