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 Slides 6% on Raised Q3 Fuel Costs View
Read MoreHide Full Article
American Airlines Group Inc. (AAL - Free Report) has revised its outlook for the third quarter of 2018. Following the altered guidance, shares the company declined more than 6% to a 52-week low of $33.41 on Oct 9. The stock closed the trading session a little higher at $33.55, the lowest since August 2016.
Q3 TRASM View Upbeat, Fuel Costs View Bearish
The company anticipates total revenue per available seat mile (TRASM) to increase approximately 2-3%. Previous guidance had projected the metric to rise 1-3% year over year. The upside, despite adversities from Hurricane Florence, has been attributed to stronger domestic yields.
Hurricane Florence caused approximately 2,100 flight cancellations this September, dampening revenues by nearly $55 million, TRASM by 50 basis points and pre-tax income to the tune of $50 million.
With fuel prices shooting up continually, the company has raised guidance pertaining to the same. Average fuel price per gallon is now expected to be between $2.28 and $2.33 compared with $2.22 and $2.27 expected earlier.
The carrier continues to expect unit costs (excluding fuel and special items) to increase in the range of 0-2% year over year. Additionally, pre-tax margin is estimated in the 5-7% band, unchanged from the previous forecast.
With the overall guidance otherwise upbeat, the sharp drop in share price is perhaps due to the raised fuel costs view.
Amid struggles, especially pertaining to escalating fuel prices, shares of the company have declined more than 35% so far this year.
Shares of Southwest Airlines, United Continental and Canadian Pacific have rallied more than 11%, 25% and 24%, respectively, in the past six months.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
American Airlines Slides 6% on Raised Q3 Fuel Costs View
American Airlines Group Inc. (AAL - Free Report) has revised its outlook for the third quarter of 2018. Following the altered guidance, shares the company declined more than 6% to a 52-week low of $33.41 on Oct 9. The stock closed the trading session a little higher at $33.55, the lowest since August 2016.
Q3 TRASM View Upbeat, Fuel Costs View Bearish
The company anticipates total revenue per available seat mile (TRASM) to increase approximately 2-3%. Previous guidance had projected the metric to rise 1-3% year over year. The upside, despite adversities from Hurricane Florence, has been attributed to stronger domestic yields.
Hurricane Florence caused approximately 2,100 flight cancellations this September, dampening revenues by nearly $55 million, TRASM by 50 basis points and pre-tax income to the tune of $50 million.
With fuel prices shooting up continually, the company has raised guidance pertaining to the same. Average fuel price per gallon is now expected to be between $2.28 and $2.33 compared with $2.22 and $2.27 expected earlier.
The carrier continues to expect unit costs (excluding fuel and special items) to increase in the range of 0-2% year over year. Additionally, pre-tax margin is estimated in the 5-7% band, unchanged from the previous forecast.
With the overall guidance otherwise upbeat, the sharp drop in share price is perhaps due to the raised fuel costs view.
Amid struggles, especially pertaining to escalating fuel prices, shares of the company have declined more than 35% so far this year.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Southwest Airlines Co. (LUV - Free Report) , United Continental Holdings, Inc. (UAL - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Southwest Airlines, United Continental and Canadian Pacific have rallied more than 11%, 25% and 24%, respectively, in the past six months.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>