American Airlines on Thursday posted a $19 million profit for the last three months of 2023, topping Wall Street estimates on the top and bottom lines.
Shares of the company rose more than 10% on Thursday.
Here’s how American performed in the fourth quarter of 2023 compared with Wall Street estimates compiled by LSEG, formerly known as Refinitiv:
- Earnings per share: 29 cents adjusted vs. 10 cents expected.
- Revenue: $13.06 billion vs. $13.02 billion expected.
For the last three months of 2023, American Airlines reported net income of $19 million, down nearly 98% from $803 million the year prior. Earnings per share decreased to 3 cents from $1.14 in the fourth quarter of 2022.
Adjusting for one-time items, including the impact of a new labor agreement with the airline’s pilots, American earned 29 cents per share.
In its third-quarter earnings report, the airline had estimated it would break even for the December period.
American Airlines’ stock price
“We’re really pleased with the results, we closed out the year strong,” CEO Robert Isom told CNBC’s Phil LeBeau on Thursday. “At American, we’re focused on reliability, profitability and really strengthening our balance sheet. We’ve done all of those … I think that we’re going to have a really busy first and second quarter, and I think the time to buy is right now for travel. It’s going to be a busy year.”
Looking ahead, American said it expects a net loss per share of between 15 cents and 35 cents, adjusted, for the first quarter of 2024. Costs, excluding fuel, are projected to rise between 2% and 4% for the period, with flying capacity up between 6.5% and 8.5%.
Boeing 787-9 Dreamliner, from American Airlines company, taking off from Barcelona airport, in Barcelona on 24th February 2023.
JanValls | Nurphoto | Getty Images
For full-year 2024, American expects adjusted earnings per share of $2.25 to $3.25 with flying capacity up mid-single digits over 2023.
In a letter to American team members,…
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