American Airlines (AAL), United Airlines (UAL) Earnings

U.S. Equity Earnings AAL,UAL

  • American Airlines (AAL) beats estimates for load factor.
  • United (UAL) expects demand to increase in 2022 even with the uncertain nature of the pandemic.

Airlines reported earnings and demonstrated that the recovery in business operations continues. Recently, travel demand was rebounding well but Omicron variant impacted staffing and the harsh winter may be posing a threat going into 2022; not to mention the recent issue around 5G technology close to airport runways causing cancellations. That latter point has seen some calm, however, as AT&T and Verizon have agreed to hold off on rolling out their towers near major airports.

American Airlines (AAL)

came in strong with earnings after beating analysts’ predictions of -$1.45 vs -$1.42 reported. Their load factor (a measure to determine seating capacity) came at 80.2%, translating into revenue of $9.4 billion vs $9.3 billion estimated. Although this is still below the revenue generated pre-pandemic, there’s been a strong lift in the number of seats being filled, unlike a year ago when this same data point was at only 64.1%. This illustrates further recovery from the initial onset of Covid, pre-pandemic levels had a load factor between 82% to 87% and this past quarter is the closest we’ve seen the company move towards those pre-pandemic numbers.

This keeps the focus for continued recovery as we move deeper into 2022 trade.

American Airlines Group Price Chart

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Created by Kaithleen Pesantez

United Airlines (UAL)

surprised the market with earnings at -$1.60 vs -$2.10 predicted and revenues at $8.19 billion vs $7.96 billion expected. The stock showed a mixed reaction as a number of systemic themes remain at the forefront, but United equity saw a drop of 0.77%, mainly from UAL’s load factor coming in lower than predicted. The company’s load factor came in at 77.0%, which was slightly below both the expectation and pre-pandemic levels.

Like American Air looked at above, the focus remains on data points such as load factor as the world tries to gauge just how strong the recovery remains to be, even as the Federal Reserve gears up for the first rate hike since the pandemic came into the equation almost two years ago.

United Airlines Price Chart

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Created by Kaithleen Pesantez

— Written by Kaithleen Pesantez, Market Strategist for

Contact and follow Kaithleen on Twitter: @ktpesantez

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