American Airlines (AAL.US) has updated its first-quarter performance guidance, reflecting stronger-than-expected demand and higher fuel prices. The company stated that demand has surpassed expectations due to the effective execution of its commercial initiatives and robust market conditions. American Airlines now anticipates first-quarter revenue to increase by more than 10%, which would represent the highest quarterly year-over-year revenue growth rate in the company's history. Previously, the airline had projected total revenue growth between 7% and 10%. The revised guidance was disclosed in a filing with the U.S. Securities and Exchange Commission. The company is scheduled to present at the J.P. Morgan Industrial Conference in Washington on Tuesday. Cost per available seat mile, excluding fuel (CASM-ex), is expected to rise by 4% to 5%, compared to a prior forecast of 3% to 5%. To account for a "significant" increase in fuel prices, the company estimates an impact of approximately $400 million and now expects its adjusted net loss per share to be at the lower end of its previously projected range of a $0.10 to $0.50 loss per share. Following the announcement, American Airlines' stock rose more than 4% in early Tuesday trading.
Comments