Revenue
Earnings
The consensus target for earnings per share in Q3 2024 is $0.15, which compares to adjusted EPS of $0.38 reported in the prior-year quarter. In Q2 2024, adjusted EPS amounted to $1.09.
Points to note
Last quarter, American Airlines faced softness in the domestic marketplace. Revenues were impacted by excess industry supply leading to higher-than-expected discounting activity. Adverse weather also impacted operations at several hubs.
In its Q2 report, the company guided for third quarter travel to be down 2.5-4.5% year-over-year. AAL lowered its planned capacity growth for the back half of the year and had projected capacity growth of approx. 3% for Q3.
The company forecasted CASMx for Q3 2024 to be up approx. 1-3% YoY, and fuel price to range between $2.55-2.75 per gallon. It projected adjusted operating margin to be 2-4% in Q3.
AAL is likely to have benefited from strong travel demand during the summer and from the drop in fuel costs and these benefits could be reflected in its Q3 results. The company is also expected to benefit from growth in loyalty revenues and gains from its AAdvantage business program.