- AAL predicts a 3Q CASM Ex-Fuel increase of 4% to 6%, which is previously at 2% to 4%.
- The company’s yearly forecast still anticipates a CASM ex-fuel increase of about 2% to 4%.
- An expense of approximately $230 million related to retroactive pay will impact the financial results for the third quarter.
- This expense is due to a new collective bargaining agreement with mainline pilots, represented by the Allied Pilots Association.
- With this expense included, the third-quarter CASM-ex1 guidance is expected to rise by about 2 points compared to its previous guidance.
- Current market advisories show 3 buys, 16 holds, and 3 sells for AAL.
American Airlines Group on Smartkarma
Analysts have recently been covering American Airlines Group on Smartkarma, an independent investment research network. According to research reports from Baptista Research, the airline managed to surpass revenue and earnings expectations. In the first half of the year, American Airlines received 13 deliveries and is expecting 10 more by the end of the year. Additionally, American Airlines Group got off to a good start in 2023 with revenues above expectations and an earnings beat.
Baptista Research‘s reports also highlighted the improving premium cabin demand as a positive sign, and the company’s performance in the last quarter as solid with an all-around beat. Furthermore, the company reported a net income of $827 million for the fourth quarter and $328 million for the entire year and performed better than peers. The research firm gave American Airlines Group a ‘Hold’ rating with a revised target price.
A look at American Airlines Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
American Airlines Group Inc. is a leading airline providing scheduled passenger, freight, and mail services across North America, the Caribbean, Latin America, Europe, and the Pacific. With their strong network of connecting services throughout the United States, Canada, and the Caribbean, the company has long-term outlook for continued success. According to Smartkarma Smart Scores, the company scored highly in the categories of Growth (4/5), Resilience (5/5) and Momentum (4/5), indicating a strong and stable future. Despite a lower score in Value (0/5), American Airlines Group Inc. is well-positioned to continue its operations and customer satisfaction.
American Airlines Group Inc. is a reliable and trusted provider of air travel, with a strong outlook for the future. With its high scores in Growth, Resilience, and Momentum, the company is well-positioned to continue to deliver outstanding services and customer satisfaction. The company’s lower score in Value is not indicative of its overall long-term outlook, as its strong network of connecting services and customer satisfaction remain a key component of its continued success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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