American Airlines beats by $0.02, reports revs in-line; sees sequential improvement in Q4 unit rev (51.02)
- Reports Q3 (Sep) earnings of $1.42 per share, $0.02 better than the Capital IQ Consensus of $1.40; revenues rose 2.7% year/year to $10.88 bln vs the $10.88 bln Capital IQ Consensus. Pre-tax earnings excluding net special items for the third quarter of 2017 were $1.1 billion, a $369 million decrease from the third quarter of 2016. During the third quarter, the company's operations were affected by Hurricanes Harvey, Irma and Maria, causing more than 8,000 flight cancellations, and reducing pre-tax earnings by an estimated $75 million For the first time since the second quarter of 2014, yield grew in every geographic region, with notable strength in Latin America.
- Third-quarter TRASM increased by 1.1 percent on a 1.6 percent increase in total available seat miles.
- American expects its fourth-quarter TRASM to increase ~2.5 to 4.5 percent year-over-year, which reflects continued improvement in demand for both business and leisure travel. The co also expects its fourth-quarter pre-tax margin excluding special items to be between 4.5 and 6.5 percent.