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American Airlines Up on Record April Traffic, Upbeat Q2 View
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Premier passenger carrier, American Airlines Group Inc. (AAL - Free Report) saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. The company witnessed a 3.1% rise in traffic, which is measured in revenue passenger miles (RPMs), to $18.6 billion from $18 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.8% to $22.6 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 82.2% from 80.4% in Apr 2016 as traffic growth outpaced capacity expansion.
On a year-to-date basis, the carrier registered a 0.3% decline in RPMs to $69.6 billion, while ASMs declined 0.6% to $87 billion, both on a year-over-year basis. Also, load factor increased 20 basis points (bps) year over year to 80%. Moreover, passenger count (PAX) grew 0.8%, while it declined 0.7% on a year-to-date basis.
American Airlineshas raised its projections for the second quarter of 2017. The company expects total revenue per available seat mile (TRASM) growth in the band 3.5%–5.5% year over year. Pre-tax margin (excluding special items) in the second quarter is estimated in the range of 12%–14%. The company’s prior guidance for TRASM was 3%–5%, while that for pre-tax margin was 11%–13%.
The company recently reported first-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues. The carrier’s adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Revenues of $9,624 million edged past the Zacks Consensus Estimate of $9,621.3 million. Airline heavyweights like Southwest Airlines (LUV - Free Report) and Alaska Air Group (ALK - Free Report) have also reported their financial numbers over the past few weeks.
Shares of Deutsche Lufthansa have rallied 39.84% on a year-to-date basis.
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American Airlines Up on Record April Traffic, Upbeat Q2 View
Premier passenger carrier, American Airlines Group Inc. (AAL - Free Report) saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. The company witnessed a 3.1% rise in traffic, which is measured in revenue passenger miles (RPMs), to $18.6 billion from $18 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.8% to $22.6 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 82.2% from 80.4% in Apr 2016 as traffic growth outpaced capacity expansion.
On a year-to-date basis, the carrier registered a 0.3% decline in RPMs to $69.6 billion, while ASMs declined 0.6% to $87 billion, both on a year-over-year basis. Also, load factor increased 20 basis points (bps) year over year to 80%. Moreover, passenger count (PAX) grew 0.8%, while it declined 0.7% on a year-to-date basis.
American Airlines has raised its projections for the second quarter of 2017. The company expects total revenue per available seat mile (TRASM) growth in the band 3.5%–5.5% year over year. Pre-tax margin (excluding special items) in the second quarter is estimated in the range of 12%–14%. The company’s prior guidance for TRASM was 3%–5%, while that for pre-tax margin was 11%–13%.
The company recently reported first-quarter 2017 results, beating the Zacks Consensus Estimate for both earnings and revenues. The carrier’s adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate by 4 cents. Revenues of $9,624 million edged past the Zacks Consensus Estimate of $9,621.3 million. Airline heavyweights like Southwest Airlines (LUV - Free Report) and Alaska Air Group (ALK - Free Report) have also reported their financial numbers over the past few weeks.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
Zacks Rank & Key Pick
American Airlines currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Deutsche Lufthansa AG (DLAKY - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Deutsche Lufthansa have rallied 39.84% on a year-to-date basis.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>