CNBC Overtime’s Post

American Airlines reported its financial results for the fourth quarter on Thursday. Here's what CEO Robert Isom said in a press release today. https://lnkd.in/dHiXqd5Y #americanairlines #investing #airtravel #earningsseason #stockmarketnews #unitedstates #airlines #businessnews

United Airlines jumps after results beat ‘dramatically low’ expectations Full Article Link >>> https://lnkd.in/gEDnfR7U United Airlines shares rose about 5.3% premarket on Wednesday, driven by an upbeat profit forecast for the second quarter and strong first-quarter results despite a $200 million hit over planemaker Boeing’s safety crisis. The carrier’s forecast signaled strength in travel demand as corporate spending improved, lifting shares of rival Delta Air Lines and American Airlines […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

United Airlines jumps after results beat ‘dramatically low’ expectations Full Article Link >>> https://lnkd.in/gjT3HTX5 United Airlines shares rose about 5.3% premarket on Wednesday, driven by an upbeat profit forecast for the second quarter and strong first-quarter results despite a $200 million hit over planemaker Boeing’s safety crisis. The carrier’s forecast signaled strength in travel demand as corporate spending improved, lifting shares of rival Delta Air Lines and American Airlines […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

American Airlines Group Inc. AAL is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. American Airlines has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 23.83%. The Zacks Consensus Estimate for AAL’s fourth-quarter 2023 earnings has been revised upward by more than 100% in the past 60 days.

American Airlines Slashes 2024 Earnings Forecast, Shares Plummet American Airlines has made a drastic downward revision in its profit forecast for the year, now projecting earnings between 70 cents and $1.30 per share, a significant decrease from the previously estimated $2.25 to $3.25. This adjustment comes as the airline grapples with an industry-wide oversupply of seats and the repercussions of a business strategy that has alienated corporate clients and travel agencies. The company foresees breaking even in the third quarter, a stark contrast to the 48 cents per share profit that analysts had anticipated. Consequently, American Airlines witnessed a nearly 7% drop in premarket trading. CEO Robert Isom openly recognized the underperformance in the second quarter, attributing it to a flawed sales and distribution strategy and a mismatch between domestic supply and demand. # Thank you Elena Garcia for your submission!

Airlines this summer are contending with too many seats and too many flights in the US, primarily at domestic-focused discount carriers, even with demand expected to hit record levels. The dynamic has given many travelers cut-rate fares as carriers compete to fill their planes. It's also hurting the airline industry's bottom line. United Airlines on Wednesday forecast a third-quarter profit that fell short of Wall Street’s expectations, echoing an earlier warning from Delta that downward pressure on fares is weighing on the entire industry. Those discounts could become less common after mid-August, when airlines plan to dial back flying. Bloomberg reporter Mary Schlangenstein has the latest: https://lnkd.in/edG8adzB

This chart shows one of the biggest mysteries in aviation today: where have the budget airlines' profits gone? Activist investor Elliott Management has just made a multi-billion dollar bet on this very question. Low-cost and ultra low-cost airlines had industry leading profit margins before the pandemic. But today, even with flight demand at all-time highs, these carriers are struggling to turn a profit. Is bad consumer karma coming back to bite the budget airlines? Are legacy airlines competing better for leisure consumers? Just a spot of bad luck because of Boeing and supplier issues? Or plain old-fashioned executive hubris and mis-management? What do you think the problem is, and most importantly, is this a temporary hiccup or a new paradigm for U.S. airlines? Read our Skift Research analysis of the challenge that low-cost airlines face by Ashab H. Rizvi. And as always, we welcome your feedback. https://lnkd.in/eGJqMqFa

For those who have not yet seen the December issue of Airline Business I have attached my latest article. Here, "follow the money" refers to the share price performance of airlines as an indication of their attractiveness to investors. It is already reasonably clear, and will become even more so over the next twelve months, which managements have in fact structurally built back better and where the recent strength in profits has been transitory. Against this background there should also be no doubt is how much it will cost for airlines, where managements, even before the pandemic, failed to invest, to catch up with their rivals, let alone regain what were once market leading positions. There will be plenty of things to consider and analyse in 2024 and also to write about. #AirlineBusiness #airlines #airlineindustry #investment #structuralchange

📊 BUSINESS NEWS 🚀 American Airlines has reported revenues of $14.3bn for the second quarter of the year – marking its highest ever quarterly revenue total ⚡️The US airline also reduced its total debt by around $680m, during the quarter, and is on track to reduce debt, from peak levels, by $15bn by the end of 2025 📈 Read more on ITTN 👉🏽 https://shorturl.at/AtEaT #ITTNGroup #ITTNSwitchedOn

from United Airlines CFO (at Citi event): "The low-cost carriers are formerly low-cost carriers. They had a big labor cost advantage. And that really was the biggest advantage. The labor cost -- structural labor cost, but then also they had a juniority of workforce because they were growing so fast. Well, the juniority workforce is going away as our growth rate converges with their growth rate. So no advantage there. And because of the scarcity of labor, wages have gone up for everybody, but they've gone up for the low-cost carriers more. That doesn't unwind. There's no natural way for that to unwind. ... at the same time, we break out with the revenue advantage through decommoditizing our product... And so what you've seen is a complete inversion in the margin structure of the industry where previously the low-cost carriers had margins that were 2x the legacy carriers. That has flipped. In fact, it's more than flipped right now because most of them are actually losing money right now. And so they face some very tough choices." #airlines #unitedairlines