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American Airlines stock edged higher Tuesday after the company issued preliminary first-quarter revenue estimates that came in slightly higher than expected.
For the first quarter of 2022, American Airlines (ticker: AAL ) posted preliminary revenue of $8.89 billion, above consensus estimates for $8.77 billion. This is a 16% decline from the first quarter of 2019, which is ahead of the 17% decrease the company had previously anticipated, American said. This is also above an earlier forecast for a 20% to 22% drop.
During the first quarter, the company flew 59.5 billion available seat miles, down 10.7% from the same quarter in 2019. Quarterly CASM, or cost per available seat mile, is expected to be up between 12% and 13% from 2019, ranging between $17.79 and $17.98. The lower margin is up from previous guidance indicating it would be up between 11% to 13%.
The company expects its cost for jet fuel to be between $2.80 and $2.85 per gallon, up from a range of $2.73 and $2.78 issued in its previous guidance in March.
In addition, American is projecting it will end the first quarter with approximately $15.5 billion in total available liquidity.
The company reports earnings on April 21 at 7:30 a.m. Eastern.
American stock was up 0.4% to $17.04. The shares have lost 5.5% this year and 24% over the last 12 months.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
This article was originally published by Marketwatch.com. Read the original article here.
