American Airlines nasdaq Aal Stock Soars on Strong Earnings and Upbeat Guidance

American Airlines (NASDAQ: AAL) Stock Soars on Strong Earnings and Upbeat Guidance

American Airlines Group (NASDAQ: AAL) shares jumped by over 10% on Thursday following the release of better-than-expected earnings. The largest U.S. carrier also provided optimistic guidance, fueled by increased demand for air travel.

American Airlines (AAL) reported its fourth-quarter earnings per share (EPS) at $0.29, excluding certain items. This figure is nearly triple what analysts had anticipated. Revenue reached $13.1 billion, and the load factor, a measure of seating capacity filled by passengers, came in at 83.6%. Both these metrics exceeded expectations.

The airline attributed the results to sustained robust demand for American’s offerings, record revenue generated from its travel rewards program, solid operational performance, and efficient cost control measures.

The company highlighted its stellar performance over the holiday travel period, boasting its best-ever completion factor, on-time departures, and the lowest mishandled baggage rate.

American Airlines reported a substantial debt reduction, surpassing half a billion dollars in the quarter and $3.2 billion for the entire year of 2023. This achievement signifies progress towards its ambitious target of slashing total debt by $15 billion by the end of 2025, with over 75% of the goal already accomplished.

The airline expects its full-year earnings per share (EPS) to fall within the range of $2.25 to $3.25, surpassing the forecasts made by analysts.

American Airlines (NASDAQ: AAL) Stock Reaction

AAL stock experienced a surge of 10.27% on Thursday. The number of shares traded that day was 94,646,765 (94.64 million), higher than the average daily trading volume of 36.19 million.