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 Beat, FY24 View Bright
Read MoreHide Full Article
American Airlines’ (AAL - Free Report) fourth-quarter 2023 earnings (excluding 26 cents from non-recurring items) of 29 cents per share easily beat the Zacks Consensus Estimate of 6 cents. In the year-ago quarter, AAL reported earnings of $1.17 per share.
Operating revenues of $13,062 million decreased 1% year over year. The top line beat the Zacks Consensus Estimate of $13,024.1 million.
Passenger revenues, accounting for 91.9% of the top line, decreased to $12,010 million from $12,131 million recorded a year ago. The metric exceeded our estimate of $11,936 million.
Cargo revenues decreased 24.2% to $199 million. The metric came ahead of our estimate of $191.7 million. Other revenues jumped 7.2% to $853 million, which missed our expectation of $859.8 million.
More on Q4 Earnings
Total revenue per available seat miles (a key measure of unit revenue: TRASM) decreased to 18.72 cents from 19.99 recorded a year ago. Passenger revenue per available seat miles (PRASM) decreased 6.4% to 17.21 cents. The actual PRASM figure was also lower than our expectation of 17.28 cents. Consolidated yield decreased 6.1% to 20.59 cents.
Reflecting the boost in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose to 58,331 million from 55,320 million a year ago. To cater to this increased demand, capacity (measured in average seat miles) expanded to 69,773 million from 65,962 million in the year-ago quarter.
Consolidated load factor (percentage of seats filled by passengers) inched down 0.3 points to 83.6%. The actual figure for load factor was also lower than our expectation of 85.2%.
Total operating costs (on a reported basis) increased 5.1% year over year to $12,406 million, with expenses on salaries, wages and benefits rising to $3,689 million from $3,199 million a year ago. Average fuel price per gallon (including related taxes) tumbled to $3.06 from $3.50 a year ago.
Consolidated operating costs per available seat mile (excluding fuel and special items) increased 4.2% to 13.24 cents. The actual figure was less than our estimate of 13.50 cents. Fuel gallon consumption increased 5.5% to $1,033 million in fourth-quarter 2023.
Management expects first-quarter 2024 TRASM to be between 3.5% and 5.5%, lower than the first-quarter 2023 actuals. System capacity for the March-end quarter is estimated to increase 6.5-8.5% from first-quarter 2023 actuals.
Fuel cost per gallon is projected in the range of $2.65-$2.85 for first-quarter 2024. Fuel gallon consumption is expected to be between $1.04 billion and $1.06 billion. The adjusted operating margin in the March-end quarter is anticipated to be in the 0-2% range.
The company envisions total non-operating expenses to be $370 million for the first quarter. Cost per available seat miles (adjusted) is estimated to increase 2-4%. AAL projects the March-end quarter's loss per share (excluding net special items) to be in the 15-35 cents range using a share count of 655.7 million shares. The Zacks Consensus Estimate is currently pegged at a loss of 21 cents.
Management anticipates 2024 capacity to improve in mid-single digits from the year-ago levels. TRASM for the full year is expected to be approximately flat to down 3% from 2023 actuals. The adjusted operating margin for 2024 is estimated in the 6-9% range. The company envisions total non-operating expenses to be $1,425 million for the current year.
In 2024, cost per available seat miles (adjusted) is expected to increase 0.5-3.5% from the prior-year level. AAL expects a provision for income taxes at an effective rate of approximately 25% for the full year, which is expected to be substantially non-cash. Fuel cost per gallon is projected in the range of $2.5-$2.75 for 2024. Fuel gallon consumption is expected to be between $4.3 billion and $4.5 billion.
The company expects 2024 earnings (on an adjusted basis) in the band of $2.25-$3.25 per share. The Zacks Consensus Estimate of $2.12 lies below the mid-point, i.e. $2.75, of the guided range.
Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.9% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
American Airlines (AAL) Q4 Earnings Beat, FY24 View Bright
American Airlines’ (AAL - Free Report) fourth-quarter 2023 earnings (excluding 26 cents from non-recurring items) of 29 cents per share easily beat the Zacks Consensus Estimate of 6 cents. In the year-ago quarter, AAL reported earnings of $1.17 per share.
Operating revenues of $13,062 million decreased 1% year over year. The top line beat the Zacks Consensus Estimate of $13,024.1 million.
Passenger revenues, accounting for 91.9% of the top line, decreased to $12,010 million from $12,131 million recorded a year ago. The metric exceeded our estimate of $11,936 million.
Cargo revenues decreased 24.2% to $199 million. The metric came ahead of our estimate of $191.7 million. Other revenues jumped 7.2% to $853 million, which missed our expectation of $859.8 million.
More on Q4 Earnings
Total revenue per available seat miles (a key measure of unit revenue: TRASM) decreased to 18.72 cents from 19.99 recorded a year ago. Passenger revenue per available seat miles (PRASM) decreased 6.4% to 17.21 cents. The actual PRASM figure was also lower than our expectation of 17.28 cents. Consolidated yield decreased 6.1% to 20.59 cents.
Reflecting the boost in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose to 58,331 million from 55,320 million a year ago. To cater to this increased demand, capacity (measured in average seat miles) expanded to 69,773 million from 65,962 million in the year-ago quarter.
Consolidated load factor (percentage of seats filled by passengers) inched down 0.3 points to 83.6%. The actual figure for load factor was also lower than our expectation of 85.2%.
Total operating costs (on a reported basis) increased 5.1% year over year to $12,406 million, with expenses on salaries, wages and benefits rising to $3,689 million from $3,199 million a year ago. Average fuel price per gallon (including related taxes) tumbled to $3.06 from $3.50 a year ago.
Consolidated operating costs per available seat mile (excluding fuel and special items) increased 4.2% to 13.24 cents. The actual figure was less than our estimate of 13.50 cents. Fuel gallon consumption increased 5.5% to $1,033 million in fourth-quarter 2023.
American Airlines, currently carrying a Zacks Rank #2 (Buy), exited the quarter with $10.4 billion of total available liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Management expects first-quarter 2024 TRASM to be between 3.5% and 5.5%, lower than the first-quarter 2023 actuals. System capacity for the March-end quarter is estimated to increase 6.5-8.5% from first-quarter 2023 actuals.
Fuel cost per gallon is projected in the range of $2.65-$2.85 for first-quarter 2024. Fuel gallon consumption is expected to be between $1.04 billion and $1.06 billion. The adjusted operating margin in the March-end quarter is anticipated to be in the 0-2% range.
The company envisions total non-operating expenses to be $370 million for the first quarter. Cost per available seat miles (adjusted) is estimated to increase 2-4%. AAL projects the March-end quarter's loss per share (excluding net special items) to be in the 15-35 cents range using a share count of 655.7 million shares. The Zacks Consensus Estimate is currently pegged at a loss of 21 cents.
Management anticipates 2024 capacity to improve in mid-single digits from the year-ago levels. TRASM for the full year is expected to be approximately flat to down 3% from 2023 actuals. The adjusted operating margin for 2024 is estimated in the 6-9% range. The company envisions total non-operating expenses to be $1,425 million for the current year.
In 2024, cost per available seat miles (adjusted) is expected to increase 0.5-3.5% from the prior-year level. AAL expects a provision for income taxes at an effective rate of approximately 25% for the full year, which is expected to be substantially non-cash. Fuel cost per gallon is projected in the range of $2.5-$2.75 for 2024. Fuel gallon consumption is expected to be between $4.3 billion and $4.5 billion.
The company expects 2024 earnings (on an adjusted basis) in the band of $2.25-$3.25 per share. The Zacks Consensus Estimate of $2.12 lies below the mid-point, i.e. $2.75, of the guided range.
Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.5% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.9% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. Cargo revenues fell 14.8% year over year to $402 million. Revenues from other sources jumped 10.6% year over year to $803 million.
J.B. Hunt Transport Services (JBHT - Free Report) fourth-quarter 2023 earnings per share of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
Total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.