American Airlines (NASDAQ:AAL) flew higher in early trading on Thursday after besting the consensus estimates of analysts with its third-quarter earnings report.
Revenue was up 0.3% year-over-year to $13.96 billion for the quarter, nipping the consensus mark by $60 million.
Revenue passenger miles were up 1.6% to 66.6 billion during the quarter. Available seat miles rose 2.3%. American Airlines’ (NASDAQ:AAL) load factor slipped to 86.0% from 86.6% a year ago. Total departures were 1.3% higher than a year ago. Passenger revenue per available seat mile was down 2.7% to $0.1611. Operating costs per available seat mile (excluding special items and fuel) were down 3.9% to $0.1391.
Unit revenues improved sequentially throughout the quarter, with September producing positive unit revenue growth. Premium unit revenue growth year over year continues to outperform the main cabin.
Looking ahead, the airline company remains focused on executing its strategic priorities and delivering on its revenue potential. By the end of this year, AAL expects it will have fully restored its share of indirect revenue that was impacted by its former sales strategy. American (AAL) is now shifting focus to expanding its share of indirect revenue beyond historical levels, which, combined with improved distribution capabilities, is expected to produce meaningful value for the airline.
On the guidance front, American Airlines (AAL) expects Q4 EPS of $0.45 and $0.75 (midpoint $0.60) vs. $0.33 consensus and full-year EPS of $0.65 and $0.95 (midpoint $0.80) vs. $0.44 consensus.
“We’ve built a strong foundation, with best-in class cost management and a focus on strengthening the balance sheet,” updated CEO Robert Isom. “Looking forward, I’m confident that continued investments in our network, customer experience, and loyalty program will position us well to drive revenue growth and shareholder value in 2026 and beyond,” he added.
Shares of American Airlines (AAL) were up 2.7% in premarket trading to $12.41 vs. the 52-week trading range of $8.50 to $19.10.