American Airlines Group Inc (NASDAQ:AAL) this morning posted market-beating Q3 earnings, despite a revenue downturn from last year.
The Fort Worth, TX-based company reported adjusted Q3 net income of $2.80 per share, blowing away expectations of just $1.70 per share. Revenue fell 1% from the year-ago period to $10.59 billion, narrowing beating Wall Street’s $10.56 billion estimate.
Total revenue per available seat miles (ASM) was 14.73 cents in the latest period, down 2.2% from last year due to a combination of higher competition, weak international demand, and foreign currency effects.
AAL commented via press release:
“These outstanding results are due to the efforts of our more than 100,000 team members, who are working tirelessly to improve our operations, product, and customer experience,” said Doug Parker, Chairman and CEO. “Nowhere are these efforts more evident than through the seamless completion of our largest IT cutover yet, which combined our fleet and pilot groups onto one system, with no disruption to service. We’re already seeing the benefits as this cutover enables us to schedule our pilots and aircraft as one airline and allows us to further optimize our network to better meet the needs of our passengers.”
Airline carriers have benefitted from the ongoing multi-year oil price correction, which has slashed fuel costs considerably in recent years. However, airlines’ practice of hedging fuel costs has mitigated some of those potential windfalls.
American Airlines shares rose $0.87 (+2.14%) to $41.50 in premarket trading Thursday. Prior to today’s report, AAL had fallen 6.92% year-to-date.