Clear for Takeoff

Clear for Takeoff

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  • American Airlines' stock dropped on Wednesday after the company provided an updated profit forecast for Q1 that missed analysts' expectations. The airline, predicted earnings per share of 1-5 cents in its upcoming earnings report, an improvement from its previous guidance of approximately breaking even, but below the estimated 5 cents per share, according to FactSet data.
  • The airline revealed that it anticipates a 25.5% rise in total revenue per available seat mile (TRASM) compared to Q1 2022, aligning with its prior guidance range of 24% to 27%. Delta Air Lines will be the initial airline to release Q1 earnings on Thursday, with investors keeping a close eye on demand trends leading into summer and second quarter guidance.

Why it matters

Despite a strong beginning of the year, airline stocks have declined over the past month due to various factors like regional banking instability and increased oil prices that have negatively impacted investor sentiment. While the NYSE Arca Global Airline Index witnessed an increase of over 16% in Q1 2023, it has dropped by 7.5% since then.


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