American Airlines posts Q4 beat, weak Q1 guide pressures stock
Shares of American Airlines (AAL) are under pressure Thursday morning despite the airline's record revenue performance in its fiscal fourth quarter. Revenue reached $13.7 billion, surpassing the expected $13.4 billion, with adjusted earnings of $0.86 per share topping the $0.65 forecast. However, the airline's weaker-than-expected first quarter profit outlook disappointed Wall Street, with the carrier projecting a loss between $0.20 and $0.40 per share. Bloomberg Intelligence Senior Aerospace, Defense, and Airlines Industry Analyst George Ferguson joins Morning Brief to discuss his perspective on the company against the broader airline industry. Ferguson observes that American Airlines is "catching up" to leading competitors like United (UAL) and Delta (DAL), though markets are apprehensive about the first quarter guidance. He notes that "it's all about lower capacity, [which] means higher costs." Despite these challenges, Ferguson believes the airline is "improving." "I think they'll be able to catch up, [but] it'll take time," he explains to Yahoo Finance, highlighting issues such as the company's loyalty program revenue lagging behind competitors. He suggests the airline needs about a year to see improved results. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith
