American Airlines (AAL) earnings Q4 2022

American Airlines (AAL) earnings Q4 2022

Employees of American Airlines assist test in passengers at Ronald Reagan Washington National Airport on January 11, 2023 in Arlington, Virginia.

Alex Wong | Getty Images

American Airlines‘ fourth-quarter revenue beat analysts’ expectations as sturdy journey demand and high fares buoyed outcomes throughout a turbulent vacation season.

Shares of American had been up about 2% in premarket buying and selling on Thursday.

Here’s how American Airlines carried out within the fourth quarter in contrast with what Wall Street anticipated, primarily based on a mean of analysts’ estimates compiled by Refinitiv:

  • Adjusted earnings per share: $1.17 versus an anticipated $1.14
  • Total income: $13.19 billion versus anticipated $13.20 billion

For the three months ended Dec. 31, the corporate reported web revenue of $803 million, or $1.14 per share, unadjusted — a stark enchancment from a lack of $931 million, or $1.44 per share, throughout the identical interval a yr earlier.

Quarterly income of $13.19 billion was up 16.6% from the identical interval in 2019, earlier than the pandemic stymied journey. American earlier this month raised its income and revenue estimates for its fourth quarter.

American raked in that report fourth-quarter income regardless of working 6.1% much less capability, suggesting flyers hold paying up for seats.

For the total yr, American reported $127 million in web revenue. It was the primary full-year revenue for the service since 2019, CEO Robert Isom stated in a message to workers Thursday morning.

The firm paid a mean of $3.50 per gallon of gas within the fourth quarter, up 48% from final yr. It expects that value to come back all the way down to someplace between $3.33 and $3.38 per gallon because it heads into its first quarter of 2023.

Based on these value estimates and the place demand goes, American stated it expects capability to be 8% to 10% larger than the primary quarter of 2022 and tasks that it’ll break even on earnings per share.

Airline executives at Delta and United had been equally upbeat about 2023 bookings regardless of considerations about layoffs at main U.S. firms and financial weak point.

American is scheduled to carry a name with analysts and media at 8:30 a.m., when they’re more likely to face questions on prices in 2023, the state of company journey demand and the potential for brand spanking new labor contracts with pilots and flight attendants this yr.

This is breaking information. Please test again for updates.