Two Travel-Related Earnings Reports To Watch On Friday: Royal Caribbean And American Airlines

• Royal Caribbean Cruises Ltd RCL and American Airlines Group Inc AAL are scheduled to announce their third quarter 2015 financial results on Friday, before the market opens.
• It seems like the third quarter was a good one for travel-related companies. Both Royal Caribbean and American Airlines are expected to deliver their strongest earnings in years.
• Shares of both companies rose on Thursday trading.

Royal Caribbean Cruises

As it can be seen in the chart below, Royal Caribbean’s earnings respond to a cycle, peaking in the third quarter each year.

For the third quarter of 2015, the Street is modeling consensus earnings of $2.70 per share on revenue of $2.531 billion, up from earnings of $2.20 per share on revenue of $2.389 billion delivered a year ago, and from EPS of $1.71 on sales of $2.311 billion retrieved two years back.

The crowd, for its part, is projecting earnings of $2.73 per share on revenue of $2.538 billion.

Moreover, as it can be noted in the chart above, Royal Caribbean has tended to meet estimates over the past couple of years.

American Airlines

According to Estimize, American Airlines is also expected to report a very strong quarter, with earnings up more than 63 percent year-over-year, from $1.66 per share a year ago to $2.72 per share this quarter.

On the other hand, revenue is expected to decline substantially, from $11.139 billion in the third quarter of 2014, to $10.723 billion in the third quarter of 2015.

Same as in the previous case, investors should note that the company has a tendency to meeting estimates.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.