American Airlines shares jump on 3Q results, robust guidance

American Airlines Group Inc. [s:aal] shares jumped 2.4% before market open, lifted by the company’s third-quarter results and robust fourth-quarter guidance. The carrier earned 69 cents a share on net income of $483 million, compared with a loss of 25 cents a share on net income of $169 million in the prior-year’s quarter. Excluding items, the carrier earned 69 cents a share on net income of $478 million. Analysts surveyed by FactSet were looking for earnings of 54 cents a share on net income of $403 million. American Airlines reported third-quarter revenue of $13.462 billion, compared with $8.969 billion in the prior year’s quarter. Analysts surveyed by FactSet were looking for revenue of $13.365 billion. The company said that third-quarter revenue was up 13% on the same period in 2019, before the pandemic hit, despite American Airlines flying 9.6% less capacity. The company’s third-quarter load factor was 85.3%, compared with the FactSet consensus of 84.9%. “The American Airlines team continues to deliver on our goals of running a reliable operation and returning to profitability,” said American’s CEO Robert Isom, in a statement. “Demand remains strong and it’s clear that customers in the U.S. and other parts of the world continue to value air travel and the ability to reconnect post-pandemic.” American Airlines expects fourth-quarter revenue up 11% to 13% compared to the fourth quarter of 2019 on 5% to 7% lower capacity. Excluding items, the company expects fourth-quarter earnings of 50 cents to 70 cents a share, compared with the FactSet consensus of 19 cents a share.