American Airlines Raises Q1 Earnings Outlook, But Below View; Stocks Down

(RTTNews) - American Airlines Group Inc. (AAL) on Wednesday has revised up its first-quarter adjusted earnings outlook while it comes in below analysts' estimates.

Following the news, AAL is trading down by 7.20 percent at $13.28 per share on the Nasdaq.

For the first-quarter, the company now projects adjusted earnings per share or EPS of around $0.01 - $0.05 as against its previous expectation for an approximate breakeven.

On average, 15 analysts polled by Thomson Reuters expect the airline to report EPS of $0.06, for the quarter. Analysts' estimates typically exclude special items.

The Group now projects available seat miles or ASMs to be up around 9.2 percent, versus its previous projection of approximately 8 percent to 10 percent.

First quarter total revenue per available seat mile or TRASM is expected to be up approximately 25.5 percent, at the mid-point of its previous guidance of up 24 percent to 27 percent.

In addition, for the first-quarter, American Airlines expects to register net income per share of -$0.03 to $0.01 per share. Net earnings are projected at -$16 million to $10 million, for the period.

For the first-quarter, the company anticipates reporting operating income of $414 million, whereas adjusted operating profit is projected at $427 million.

Revenue for the quarter is expected at $12.194 billion. Analysts, on average, project the firm to post revenue of $12.21 billion, for the quarter.