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 (AAL) Q4 Earnings In Line, Revenues Top (Revised)
Read MoreHide Full Article
American Airlines Group Inc.’s (AAL - Free Report) fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. Quarterly earnings decreased significantly year over year. Higher costs hurt the bottom line.
Revenues of $9,789 million were 1.7% above the year-ago figure and edged past the Zacks Consensus Estimate of $9,765.5 million. Total revenue per available seat miles (TRASM) improved 1.3% to 14.9 cents in the reported quarter. This was the first quarter in which the metric grew on a year-over-year basis since the fourth quarter of 2014.
Consolidated yield improved 1.8% to 15.62 cents. Passenger revenue per available seat miles improved 0.2% to 12.71 cents. Traffic was down 1.3%, whereas capacity was up 0.4%. This resulted in relatively empty planes. Consolidated load factor (percentage of seats filled by passengers) declined as traffic contracted and capacity expanded. Load factor deteriorated to 81.4% from the comparable year-ago figure of 82.7%.
Total operating expenses climbed 5.4% year over year to $9 billion primarily due to an increase in labor costs. Expenses pertaining to salaries and benefits surged 17.4%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%.
American Airlines Group, Inc. Price, Consensus and EPS Surprise
During the quarter, this Zacks Rank #2 (Buy) company returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Feb 27, 2017, to the shareholders as of Feb 13.
The carrier also approved a new $2 billion buyback program, which is scheduled to expire on Dec 31, 2018. The carrier has returned more than $9.6 billion to stockholders through share repurchases and dividends since mid-2014. We are impressed by the company’s shareholder-friendly initiatives.
American Airlines remains focused on introducing new aircraft and retiring old ones from its fleet. In keeping with its aim to modernize its fleet, the carrier took delivery of 55 new mainline aircraft and 42 regional ones, during 2016. Also, the carrier invested $4.4 billion toward a new aircraft during the year.
The company expects TRASM for the first quarter of 2017 to be up in the band of 2.5–4.5% (year over year). American Airlines expects pre-tax margin excluding special items in the first quarter to be approximately in the range of 3–5%. Consolidated CASM (excluding fuel and special items) is projected to increase 9% in the first quarter. The metric is expected to increase around 4% in 2017. Capacity (system) in 2017 is projected to increase 1% in 2017.
Other Important Releases Coming Up
Investors in the airline space keenly await the fourth-quarter earnings reports of SkyWest, Inc. (SKYW - Free Report) , Spirit Airlines (SAVE - Free Report) and Alaska Air Group (ALK - Free Report) , slated for release on Feb 2, Feb 7 and Feb 8, respectively.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
American Airlines (AAL) Q4 Earnings In Line, Revenues Top (Revised)
American Airlines Group Inc.’s (AAL - Free Report) fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. Quarterly earnings decreased significantly year over year. Higher costs hurt the bottom line.
Revenues of $9,789 million were 1.7% above the year-ago figure and edged past the Zacks Consensus Estimate of $9,765.5 million. Total revenue per available seat miles (TRASM) improved 1.3% to 14.9 cents in the reported quarter. This was the first quarter in which the metric grew on a year-over-year basis since the fourth quarter of 2014.
Consolidated yield improved 1.8% to 15.62 cents. Passenger revenue per available seat miles improved 0.2% to 12.71 cents. Traffic was down 1.3%, whereas capacity was up 0.4%. This resulted in relatively empty planes. Consolidated load factor (percentage of seats filled by passengers) declined as traffic contracted and capacity expanded. Load factor deteriorated to 81.4% from the comparable year-ago figure of 82.7%.
Total operating expenses climbed 5.4% year over year to $9 billion primarily due to an increase in labor costs. Expenses pertaining to salaries and benefits surged 17.4%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%.
American Airlines Group, Inc. Price, Consensus and EPS Surprise
American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote
During the quarter, this Zacks Rank #2 (Buy) company returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Feb 27, 2017, to the shareholders as of Feb 13.
The carrier also approved a new $2 billion buyback program, which is scheduled to expire on Dec 31, 2018. The carrier has returned more than $9.6 billion to stockholders through share repurchases and dividends since mid-2014. We are impressed by the company’s shareholder-friendly initiatives.
American Airlines remains focused on introducing new aircraft and retiring old ones from its fleet. In keeping with its aim to modernize its fleet, the carrier took delivery of 55 new mainline aircraft and 42 regional ones, during 2016. Also, the carrier invested $4.4 billion toward a new aircraft during the year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
The company expects TRASM for the first quarter of 2017 to be up in the band of 2.5–4.5% (year over year). American Airlines expects pre-tax margin excluding special items in the first quarter to be approximately in the range of 3–5%. Consolidated CASM (excluding fuel and special items) is projected to increase 9% in the first quarter. The metric is expected to increase around 4% in 2017. Capacity (system) in 2017 is projected to increase 1% in 2017.
Other Important Releases Coming Up
Investors in the airline space keenly await the fourth-quarter earnings reports of SkyWest, Inc. (SKYW - Free Report) , Spirit Airlines (SAVE - Free Report) and Alaska Air Group (ALK - Free Report) , slated for release on Feb 2, Feb 7 and Feb 8, respectively.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)