American Airlines’ (AAL - Free Report) second-quarter 2019 earnings (excluding 33 cents from non-recurring items) of $1.82 per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, the bottom line increased on a year-over-year basis. Revenues totaled $11,960 million, which were in line with the Zacks Consensus Estimate. However, the top line improved 2.7% on a year-over-year basis. Passenger revenues, which accounted for bulk of the top line (92.1%), increased 3.2%.
Total revenue per available seat miles (TRASM: a key measure of unit revenues) increased 3.5% to 16.54 cents in the reported quarter. Passenger revenue per available seat miles (PRASM) increased 4% to 15.22 cents in the second quarter. Consolidated yield increased 0.1%.
While traffic (measured by revenue passenger miles) was up 3.1%, capacity (measured by average seat miles) contracted 0.8%. Consolidated load factor (percentage of seats filled by passengers) expanded 320 basis points to 86.6% as traffic growth outpaced capacity expansion.
Total operating expenses (on a reported basis) increased 1.6% year over year to $10,807 million due to 3.4% increase in expenses pertaining to salaries, wages and benefits. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 4.8% to 11.34 cents. The increase was due to lower-than-expected capacity following the prolonged grounding of Boeing 737 MAX jets and operational disruptions. Average fuel cost per gallon (on a consolidated basis: including taxes) declined 4.4% to $2.14.
Furthermore, the carrier declared a dividend of 10 cents per share. The dividend will be paid on May 22 to the shareholders of record on May 8.
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American Airlines’ (AAL - Free Report) second-quarter 2019 earnings (excluding 33 cents from non-recurring items) of $1.82 per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, the bottom line increased on a year-over-year basis. Revenues totaled $11,960 million, which were in line with the Zacks Consensus Estimate. However, the top line improved 2.7% on a year-over-year basis. Passenger revenues, which accounted for bulk of the top line (92.1%), increased 3.2%.
Total revenue per available seat miles (TRASM: a key measure of unit revenues) increased 3.5% to 16.54 cents in the reported quarter. Passenger revenue per available seat miles (PRASM) increased 4% to 15.22 cents in the second quarter. Consolidated yield increased 0.1%.
While traffic (measured by revenue passenger miles) was up 3.1%, capacity (measured by average seat miles) contracted 0.8%. Consolidated load factor (percentage of seats filled by passengers) expanded 320 basis points to 86.6% as traffic growth outpaced capacity expansion.
Total operating expenses (on a reported basis) increased 1.6% year over year to $10,807 million due to 3.4% increase in expenses pertaining to salaries, wages and benefits. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 4.8% to 11.34 cents. The increase was due to lower-than-expected capacity following the prolonged grounding of Boeing 737 MAX jets and operational disruptions. Average fuel cost per gallon (on a consolidated basis: including taxes) declined 4.4% to $2.14.
Furthermore, the carrier declared a dividend of 10 cents per share. The dividend will be paid on May 22 to the shareholders of record on May 8.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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