American Airlines Group Inc. (NASDAQ: AAL) released its fourth-quarter financial results before the markets opened on Thursday. The company said that it had $0.95 in earnings per share (EPS) and $10.60 billion in revenue, versus consensus estimates from Thomson Reuters that called for $0.92 in EPS and revenue of $10.56 billion. In the same period of last year, the airline said it had EPS of $0.92 and $9.79 billion in revenue.
During the fourth quarter, cost per available seat mile (CASM) was 14.71 cents, up 7.1% compared to last year. Excluding fuel and special items, total fourth-quarter CASM was 11.25 cents, up 3.8% year over year.
At the same time, spending on fuel increased over 23% and labor expenses grew 7%. This resulted in operating expenses growing faster than revenues.
Looking ahead, the company expects its first-quarter 2018 total revenue per available seat mile to increase roughly 2.0% to 4.0% year over year, reflecting continued improvement in demand for both business and leisure travel. American Airlines also expects its first-quarter 2018 pretax margin excluding special items to be between 2.0% and 4.0%.
Additionally, the company expects its 2018 diluted earnings per share excluding net special items to be between $5.50 and $6.50. The consensus estimates are $5.32 in EPS and $44.47 billion in revenue for the full year.
Doug Parker, board chair and chief executive, commented:
2017 was a remarkable year for American Airlines. We made enormous progress as a company as we continued to make significant investments in our team members, product and operation, and those investments are beginning to pay off. Our operation continues to deliver record-setting performance for the company, and the credit goes to our team members who are simply the best in the business.
Shares of American Airlines traded down about 3.5% at $52.88 on Thursday, with a consensus analyst price target of $63.61 and a 52-week range of $39.21 to $59.08.
24/7 Wall St.Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
