American Airlines Stock Sinks as Q1 Loss Outlook Disappoints Airline Stocks Slide

GuruFocus.com
23 Jan

American Airlines (NASDAQ:AAL) is getting hit hard in early trading after posting a better-than-expected Q4 but issuing a weak outlook for the current quarter. The airline, which has been reshaping its corporate sales strategy, expects a Q1 loss of $0.20 to $0.40 per share, well below analysts' estimates of a $0.06 loss.For the full year, American projects adjusted EPS between $1.70 and $2.70, with analysts targeting $2.45. The company also forecasts cost per available seat mile (CASM) ex-fuel to rise in the high single digits for Q1 and mid-single digits for the year.Despite the disappointing guidance, Q4 results were strong. Profit came in at $0.86 per share, beating estimates by $0.20, while revenue climbed 5% to $13.7 billion. Operationally, passenger revenue per seat mile rose 0.8%, but key metrics like revenue passenger miles and load factor missed estimates.American shares are deep in the red, with Delta (NYSE:DAL), United (NASDAQ:UAL), JetBlue (NASDAQ:JBLU), and the U.S. Global Jets ETF (JETS) also lower as airline stocks struggle.

This article first appeared on GuruFocus.

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