Revenue
Earnings
American Airlines raised its adjusted EPS guidance for Q2 2023 to $1.45-1.65 from the earlier range of $1.20-1.40. Analysts are predicting EPS of $1.54. In Q1 2023, adjusted EPS was $0.05.
Points to note
American Airlines stands to benefit from a strong demand environment. The company’s efforts in simplifying its fleet and adjusting its network are expected to prove beneficial. Its strategy of forming partnerships that complement its network is paying off.
AAL now expects its unit revenue for Q2 2023 to be down 1-3% versus its previous guidance of down 2-4%. Capacity is expected to be up 3.5-5.5% versus the prior-year period. Average fuel price is expected to range between $2.55-2.65 and CASM-ex is estimated to be up 3.5-5.5%. Adjusted operating margin is projected to be 12.5-14.5% in Q2.
In Q1, unit revenue was up 25% while capacity was up 9% year-over-year. Passenger load factor was 80% while yield was up nearly 21%. CASM-ex was down 1.4%.