We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Airlines' September Traffic Declines; Stock Down
Read MoreHide Full Article
Premier passenger carrier, AmericanAirlines Group Inc. (AAL - Free Report) posted a decline in traffic in the month of September. Traffic – measured in revenue passenger miles (RPMs) – was 17.8 billion, down 1.7% from 18.07 billion recorded last September.
On a year-over-year basis, consolidated capacity (available seat miles/ASMs) too declined 0.4% to 21.76 billion. Moreover, load factor or percentage of seats filled by passengers decreased to 81.6% from 82.7% in Sep 2015 due to greater reduction in traffic compared with the capacity contraction..
On account of the lackluster performance in September, the company’s stock closed 1.77% lower in the last trading session.
In the first nine months of 2016, American Airlines recorded 0.7% growth in RPMs to 170.02 billion, while ASMs inched up 2.2% to 207.72 billion, both on a year-over-year basis. Also, the load factor declined 120 basis points year over year to 81.9%. Total passenger count (Enplanements) in September decreased 2.2% and decreased 0.6% in the first nine months of 2016.
American Airlines, sporting a Zacks Rank #5 (Strong Sell), expects total passenger revenue per ASM for the third quarter of 2016 to decline by almost 2–3% year over year. (PLS MENTION THE PREVIOUS GUIDANCE). You can see the complete list of today’s Zacks #1 Rank stocks here. The company also expects pre-tax margin of 13% to 15% for the third quarter. Cost per ASM is expected to increase by 5–7% for 2016, while mainline fuel expenses are forecast between $1.44 per gallon and $1.49 per gallon in the third quarter.
The company also disclosed that it has purchased 18.2 million shares worth $616 million in the third quarter. Moreover, American Airlines reached a tentative agreement with its flight crew training instructors and simulator instructors. Represented by the Transport Workers Union (TWU), the instructors are an integral part of the airline.
American Airlines continues to face increasing competition from peers such as United Continental Holdings Inc. (UAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Delta Air Lines Inc. (DAL - Free Report) . American Airlines is scheduled to report third-quarter operating results on Oct 20 this year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
American Airlines' September Traffic Declines; Stock Down
Premier passenger carrier, American Airlines Group Inc. (AAL - Free Report) posted a decline in traffic in the month of September. Traffic – measured in revenue passenger miles (RPMs) – was 17.8 billion, down 1.7% from 18.07 billion recorded last September.
On a year-over-year basis, consolidated capacity (available seat miles/ASMs) too declined 0.4% to 21.76 billion. Moreover, load factor or percentage of seats filled by passengers decreased to 81.6% from 82.7% in Sep 2015 due to greater reduction in traffic compared with the capacity contraction..
On account of the lackluster performance in September, the company’s stock closed 1.77% lower in the last trading session.
In the first nine months of 2016, American Airlines recorded 0.7% growth in RPMs to 170.02 billion, while ASMs inched up 2.2% to 207.72 billion, both on a year-over-year basis. Also, the load factor declined 120 basis points year over year to 81.9%. Total passenger count (Enplanements) in September decreased 2.2% and decreased 0.6% in the first nine months of 2016.
AMER AIRLINES Price
AMER AIRLINES Price | AMER AIRLINES Quote
Guidance
American Airlines, sporting a Zacks Rank #5 (Strong Sell), expects total passenger revenue per ASM for the third quarter of 2016 to decline by almost 2–3% year over year. (PLS MENTION THE PREVIOUS GUIDANCE). You can see the complete list of today’s Zacks #1 Rank stocks here. The company also expects pre-tax margin of 13% to 15% for the third quarter. Cost per ASM is expected to increase by 5–7% for 2016, while mainline fuel expenses are forecast between $1.44 per gallon and $1.49 per gallon in the third quarter.
The company also disclosed that it has purchased 18.2 million shares worth $616 million in the third quarter. Moreover, American Airlines reached a tentative agreement with its flight crew training instructors and simulator instructors. Represented by the Transport Workers Union (TWU), the instructors are an integral part of the airline.
American Airlines continues to face increasing competition from peers such as United Continental Holdings Inc. (UAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Delta Air Lines Inc. (DAL - Free Report) . American Airlines is scheduled to report third-quarter operating results on Oct 20 this year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>