American Airlines Stock Flies High On Q1 Beat, Profit Outlook For Q2

American Airlines Group Inc AAL reported a first-quarter FY22 operating revenue of $8.89 billion, including passenger revenues of $7.8 billion, and cargo revenues of $364 million, beating the consensus of $8.83 billion.
The revenue represented a recovery to 84% of comparable period revenue in 2019.
Adjusted EPS loss narrowed to $(2.32) compared to $(4.32) in 1Q21, beating consensus of $(2.40).
The airlines reported an operating loss of $(1.72) billion, compared to $(1.32) billion a year ago.
Total operating expenses grew by 99.6% Y/Y to $10.62 billion.
The passenger load factor was 74.4%, up from 59.5% in 1Q21.
ASM increased 57.6% year-over-year. Average aircraft fuel price per gallon, including related taxes, was $2.80 (+64.7% Y/Y).
American Airlines' net cash provided by operating activities totaled $1.18 billion, compared to $174 million a year ago.
American Airlines ended the quarter with $15.5 billion of total available liquidity. It held $512 million in cash.
AAL states that it was profitable excluding net special items in March and expects to be profitable in Q2 based on the current demand trends and fuel price forecast. It also continues to execute its plan to pay down ~$15 billion of debt by 2025.
Management mentioned that the demand environment is very strong.
2Q22 Guidance: Based on current trends, AAL expects Q2 capacity to be ~92% to 94% of what it was in 2Q19.
It expects total revenue to be 6% to 8% higher versus 2Q19.
Price Action: AAL shares traded higher by 10.9% at $21.61 in premarket on the last check Thursday.
Photo Via Wikimedia Commons

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