American Airlines Stock Rises On Narrower Q3 Losses, Full-Year Guidance Hike: Retail Sentiment Soars

Shares of American Airlines Group Inc ($AAL) rose over 3% on Thursday morning after reporting upbeat third-quarter results and hiking its full-year profit guidance.

Revenue rose 1.2% year-over-year (YoY) to $13.65 billion compared to a Wall Street estimate of $13.49 billion. Adjusted earnings per share (EPS) came in $0.30 compared to an estimated $0.16. The airline posted a net loss of $149 million during the quarter compared to a loss of $545 million in the same quarter a year ago.

CEO Robert Isom said the airline’s focus remains on cutting costs. “We have taken aggressive action to reset our sales and distribution strategy and re-engage the business travel community, which we’re confident will improve our revenue performance over time. We have heard great feedback from travel agencies and corporate customers as we work to rebuild the foundation of our commercial strategy and make it easy for customers to do business with American,” he said.

For the fourth quarter, the airline expects adjusted earnings per diluted share to come in between $0.25 and $0.50. The company raised its full-year 2024 adjusted EPS guidance to $1.35 and $1.60 from a previous forecast of $0.70 and $1.30.

American Airlines has reduced its total debt by approximately $360 million during the third quarter.

The firm ended the quarter with approximately $11.8 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving credit and other facilities.

Meanwhile, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (77/100) from ‘bearish’ a day ago, accompanied by ‘extremely high’ message volume.

One Stocktwits user praised the firm’s Q3 earnings.

Another user expects the stock to hit the $14 mark soon.

Also See: Southwest Airlines Reports Upbeat Q3 Earnings, Strikes Deal With Elliott: Retail Turns Bullish

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