Why American Airlines (AAL) Shares Are Trading Lower Today - American Airlines Gr (NASDAQ:AAL)

American Airlines Group Inc AAL reported a second-quarter FY22 operating revenue growth of 79.5% year-over-year to $13.42 billion, beating the consensus of $13.41 billion.
The revenue represents a 12.2% increase from the comparable period revenue in 2019.
Passenger revenues rose 86.8% Y/Y to $12.22 billion, and cargo revenues were nearly flat at $328 million.
Adjusted EPS was $0.76 compared to $(1.69) in 2Q21, below the consensus of $0.77.
The airlines reported an operating income of $1.02 billion, compared to $441 million a year ago, and the margin expanded by 168 bps to 7.6%.
Total operating expenses grew by 76.3% Y/Y to $12.41 billion.
The passenger load factor was 86.9%, up from 77% in 2Q21. Revenue passenger miles increased 36.9% Y/Y, and ASM increased 21.3% Y/Y.
The average aircraft fuel price per gallon, including related taxes, was $4.03 vs. $1.91 in 2Q21.
American Airlines' net cash provided by operating activities year-to-date totaled $2.92 billion, compared to $3.64 billion a year ago.
American Airlines ended the quarter with $15.6 billion of total available liquidity. It held $537 million in cash.
To date, American has reduced its overall debt by $5.2 billion and remains on track to reduce overall debt levels by $15 billion by the end of 2025.
AAL and its regional partners operated more than 500,000 flights in the quarter, an 8% increase over 2Q21.
3Q22 Guidance: Based on current trends, AAL expects Q3 total revenue to be 10% to 12% higher versus the third quarter of 2019 on 8% to 10% lower capacity. The company expects to be profitable in Q3.
The consensus for Q3 is $13.40 billion revenue and $0.74 EPS.
Price Action: AAL shares traded lower by 7.17% at $14.12 during the market session on Thursday.
Photo Via Wikimedia

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

-

-

-

-

-

-

-

American Airlines Slips After Q2 Results, Looks To Be Profitable In Q3