Revenue
Earnings
American Airlines has guided for adjusted EPS of $1.00-1.15 in Q2 2024. Analysts are predicting EPS of $1.06. This compares to adjusted EPS of $1.92 reported in Q2 2023. In Q1 2024, the company reported an adjusted loss of $0.34 per share.
Points to note
American Airlines expects its total revenue per available seat mile (TRASM) to decrease 5-6% year-over-year in Q2 2024. In Q1 2024, TRASM decreased by nearly 5% YoY. The company expects its capacity to increase 7-9% in Q2.
Last quarter, the top line benefited from a recovery in business travel. In addition, strength in premium content and AAdvantage customers also benefited the company’s results. In Q1, premium content comprised 61% of total revenue and grew 17% YoY. AAdvantage customers account for 72% of premium content revenue. The airline continues to invest in its premium customer experience.
American expects adjusted operating margin to range between 8.5-10.5% in Q2. Last quarter, adjusted operating margin was 0.6%.
Cost per available seat mile, excluding fuel and special items, or CASM-ex, is expected to be flat to up 1% YoY in Q2. Average fuel price per gallon is expected to be $2.70-2.80. In Q1, CASM-ex was up 2.3%.