American Airlines Group Releases Investor Relations Update for Q4 2024

American Airlines Group (NASDAQ:AAL) recently issued an investor relations update, providing insights into its performance expectations for the fourth quarter of 2024. The airline anticipates an approximate 1% to 3% increase in its fourth-quarter capacity compared to the same period in 2023. For the full year, it projects a capacity rise of approximately 5% to 6% year over year.

In terms of total revenue per available seat mile (TRASM), American Airlines Group foresees a decline of around 1% to 3% in the fourth quarter compared to 2023, with the full-year TRASM expected to drop by approximately 3% to 4% year over year. The company also forecasts a fourth-quarter CASM-ex (cost per available seat mile excluding fuel and net special items) increase of roughly 4% to 6% and a full-year rise of approximately 2% to 3% year over year.

Regarding fuel costs, based on the forward fuel curve as of October 16, 2024, American Airlines Group expects to pay an average of $2.20 to $2.40 per gallon of jet fuel (including taxes) in the fourth quarter and between $2.55 and $2.65 per gallon of jet fuel (including taxes) for the full year. Fuel consumption is estimated to be between approximately 1,075 and 1,095 million gallons in the fourth quarter and between approximately 4,400 and 4,420 million gallons for the full year.

Adjusted operating margin for the fourth quarter is projected to be around 4.5% to 6.5%, while the full-year adjusted operating margin is expected to be approximately 4.5% to 5.5%. The company anticipates a total adjusted nonoperating expense of approximately $350 million in the fourth quarter and around $1.44 billion for the full year.

American Airlines Group also disclosed a provision for income taxes at an estimated effective tax rate of approximately 26% for the fourth quarter and full year, mostly expected to be non-cash. Adjusted earnings per diluted share are predicted to be between $0.25 and $0.50 for the fourth quarter based on an expected share count of 721.1 million shares. For the full year, adjusted earnings per diluted share are forecasted to be in the range of $1.35 to $1.60 using a share count of 719.8 million shares.

Additionally, the company expects its full-year free cash flow to be between $1 billion and $1.5 billion based on current assumptions.

Investors are advised to review the full details of the update, including footnotes and disclosures on forward-looking information, for a comprehensive understanding of American Airlines Group’s financial outlook.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read American Airlines Group’s 8K filing here.

American Airlines Group Company Profile

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.