The results are likely to benefit from lower fuel prices in
the quarter. The airline’s topline numbers might benefit from passenger demand
in the holiday season. However, weakness in cargo revenue might continue in the
fourth quarter as well.
In the third quarter of 2019, American beat earnings estimates while revenues missed the mark. Revenue grew 3% to $11.9 billion while adjusted EPS totaled $1.42.
American expects fourth quarter 2019 TRASM to be flat to up
2% year-over-year. For the full year of 2019, adjusted EPS is expected to be
$4.50-5.50.
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Shares of American Airlines have fallen 19% in the past one year. The stock has an average price target of $31.89.