(AAL) – American Airlines Q4 Earnings Beat Estimates

American Airlines Q4 Earnings Beat Estimates

  • American Airlines Group Inc (NYSE: AAL) reported a fourth-quarter FY21 operating revenue decline of 17% to $9.43 billion versus 4Q19, beating the consensus of $9.37 billion.
  • Adjusted EPS loss narrowed to $(1.42) compared to $(3.86) in 4Q20, beating consensus of $(1.47).
  • The airlines reported an operating loss of $(780) million, compared to $(2.52) billion a year ago. Total operating expenses grew by 56% Y/Y to $10.21 billion.
  • Passenger load factor was 80.2%, up 1,610 bps from 64.1% in 4Q20.
  • American Airlines generated cash from operating activities in FY21 of $704 million, compared to cash used of $6.54 billion a year ago. 
  • American Airlines ended the fourth quarter with $15.8 billion of total available liquidity. It held $408 million in cash at year-end.
  • 1Q22 Guidance: Based on current trends, the company expects Q1 capacity to be down ~8% to 10% compared to 1Q19. 
  • It expects Q1 total revenue to be down ~20% to 22% versus 1Q19.
  • “Looking forward, our focus in 2022 will be to continue running a reliable airline, returning to profitability, and delivering on our long-term plan to deleverage the balance sheet,” said American’s President and incoming CEO Robert Isom.
  • Price Action: AAL shares traded higher by 1.44% at $17.56 in premarket on the last check Thursday.

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