American Airlines Q2 Earnings Down, Yet Tops View; Cuts FY24 Outlook Below Market; Stock Dips

(RTTNews) - American Airlines Group Inc. (AAL) reported Thursday sharply lower earnings in its second quarter, while adjusted earnings beat market estimates after reporting the highest-ever quarterly revenue. Further, the company trimmed its fiscal 2024 adjusted earnings forecast below market.

In pre-market activity on the Nasdaq, American shares were losing around 8.9 percent to trade at $9.27.

For the second quarter, the company's net income was $717 million or $1.01 per share, down 46.4 percent from last year's $1.34 billion or $1.88 per share.

Excluding net special items, second-quarter adjusted net income was $774 million or $1.09 per share, compared to $1.37 billion or $1.92 per share a year ago.

Analysts on average expected the company to report earnings of $1.05 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Total operating revenues were $14.33 billion, up 2 percent from last year's $14.06 billion. The Street was looking for revenues of $14.36 billion for the quarter.

Looking ahead, the company expects its third-quarter adjusted earnings per share to be approximately breakeven.

For fiscal 2024, the company now expects adjusted earnings per share to be between $0.70 and $1.30.

While announcing the first-quarter results in April, the company expected full-year adjusted earnings per share to be between $2.25 and $3.25. Analysts expect the company to report earnings of $1.81 per share.

American said it has taken aggressive action to improve its revenue performance, however, its previous sales and distribution strategy will continue to impact its revenue performance and earnings through the remainder of the year.

The company further said it is on track to reduce total debt from peak levels by $15 billion by year-end 2025.

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