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Saturday, May 28, 2022

American Airlines Group Inc (AAL) Earnings Preview: What can you expect from their quarterly results?

Last week, American Airlines Group Inc (AAL) provided quarterly results. The Wall Street analysts expected profits and revenues to fall sharply. However, the figure was slightly better than expected.

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Analysts expected $3.88 billion in revenue for American Airlines’ fourth quarter, but its revenue fell 64% year-on-year to $4 billion. The estimated losses on Wall Street at $4.11 per share, whereas the company had a loss of $3.86 during the period. As passenger traffic dropped and many flights were canceled, American Airlines spent about $30 million a day on storing aircraft, paying salaries, and other overhead associated with downtime.

There is no way to know when a particular flight will be recovered at the dock level. Therefore, American Airlines Group Inc (AAL) management also anticipates significant revenue losses for the first quarter of 2021 – 60 to 65 % YoY. Despite that, it seems this year will be the year of recovery, and sales will return to normal, at least in part. The airline’s projections expect to have $ 15 billion of total available liquidity at the end of the quarter, sufficient to operate through this challenging period.

AAL stock has grown due to American Airlines’ quarterly results. Short-sellers, who wish to maximize their profits, is believed to be the cause of the stock’s rise and not investors’ attitude toward the airline’s performance. Therefore, the AAL quote increased by more than 9 % based on short-sellers compared to the beginning of 2021.

Shares of American Airlines Group Inc (AAL) have moved -5.14% or -$0.93 lower in the latest trading session. The stock has gained 8.88% in the year-to-date period. However, the stock’s trailing 12-month performance is nearly -38.06% lower. Over the trailing three-month period, the stock has gained up 8.88% YTD and up 56.80% for the last three-month period. The shorter duration has improved by 8.53% over the past month and by 8.26% over the last week.

However, it is still too early to talk about even the beginning of a recovery for the aviation industry because many restrictions are still in place, and mass vaccinations have just begun.

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