American Airlines trims annual profit forecast due to higher fuel prices

الخطوط الجوية الأمريكية

American Airlines Group Inc.

AAL

0.00


Overview

  • US airline's Q2 revenue rose 16%, a slight beat of analyst expectations

  • Adjusted EPS for Q2 beat analyst expectations

  • Company offset nearly half of $2.2 bln yr/yr fuel cost increase with higher fares


Outlook

  • American expects Q3 revenue growth of 16% to 19% year over year

  • Company sees Q3 adjusted EPS between ($0.70) and ($0.10)

  • American now expects FY 2026 adjusted EPS between ($0.65) and $0.65


Result Drivers

  • STRONG DEMAND - Co said robust demand across premium, main cabin, domestic, and international segments drove revenue growth

  • PREMIUM AND BUSINESS TRAVEL - Premium passenger unit revenue rose 13.4% and managed corporate revenue increased 26% yr/yr, per co

  • FARE INCREASES OFFSET FUEL COSTS - Co offset nearly 50% of $2.2 bln yr/yr fuel expense increase through higher fares


Company press release: ID:nGNXbcVHyL


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Slight Beat*

$16.74 bln

$16.71 bln (16 Analysts)

Q2 Adjusted EPS

Beat

$0.15

$0.03 (20 Analysts)

Q2 EPS

$0.11

Q2 Operating Margin

2.70%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the airlines peer group is "buy"

  • Wall Street's median 12-month price target for American Airlines Group Inc is $19.25, about 30.2% above its July 22 closing price of $14.79

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • July 22 - Southwest Airline lowers 2026 profit floor as fuel costs blunt pricing gains

  • July 22 - Alaska Air says its underlying business strengthened despite fuel-hit quarter

  • July 23 - India's IndiGo posts quarterly loss on soaring fuel costs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


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