American Airlines Group Inc (NASDAQ:AAL, ETR:A1G) said it is projecting a 2024 profit that surpasses Wall Street expectations, benefiting from robust demand for international travel.
The Texas-based carrier forecasts full-year adjusted earnings per diluted share between $2.25 and $3.25, exceeding Bloomberg consensus estimates of $2.22.
The outlook is driven by solid passenger bookings, a decrease in fuel prices, and present customer demand, according to the company.
As for its fourth quarter, American Airlines outperformed expectations, reporting a pretax profit of $257 million, beating the forecast of $63 million. Its adjusted earnings per share stood at $0.29, exceeding the estimated $0.07 and the consensus of $0.12.
Revenue for the quarter was approximately $13.1 billion, in line with expectations.
The airline reported a 5.8% growth in available seat miles for Q4 2023, reaching 69.8 billion.
Annual revenue at American increased by 7.8% to a record $52.8 billion, while operating income jumped by almost 89% to $3.03 billion. In the fourth quarter, the company posted more than $13 billion in revenue and an operating margin of 5% on a GAAP basis.
Despite a positive 2024 outlook, American anticipates an adjusted diluted per-share loss of $0.15 to $0.35 in 1Q, citing factors like falling revenue per available seat mile and rising expenses related to a pilot agreement.
CEO Robert Isom attributes the optimistic forecast to the company's strong 2023 performance, citing the benefits of its travel rewards program and operational reliability.
Shares of American Airlines were up around 6.9% in midmorning trading Thursday.