NASDAQ$AAL

American Airlines Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

American Airlines reported record quarterly revenue and strong operational performance, driven by continued demand and improved completion factors.

American Airlines reported a strong second quarter with record revenue of $14.1 billion, a 4.7% increase year-over-year. The company achieved a net income of $1.3 billion, or $1.88 per diluted share, and generated $1.2 billion in free cash flow. American is raising full-year adjusted EPS guidance to between $3.00 and $3.75 per diluted share.

  • Record quarterly revenue of $14.1 billion, a 4.7% increase year over year.
  • Net income of $1.3 billion, or $1.88 per diluted share.
  • Generated free cash flow of $1.2 billion in the second quarter.
  • Raising full-year adjusted EPS guidance to between $3.00 and $3.75 per diluted share.

Headline financials

Total Revenue

$14.1B

Previous: $13.4B+4.7%
EPS (adj)

$1.92

Previous: $0.76+152.6%
Yield

$21.62

Previous: $21.25+1.7%
Passenger Revenue per ASM

$18.63

Previous: $18.47+0.9%
Total Revenue per ASM

$20.18

Previous: $20.29-0.5%
Avg. Fuel Price per Gallon

$2.62

Previous: $4.03-35.0%
Fuel Consumption (gallons)

1.0B

Previous: 997.0M+4.4%
Cost per ASM

$17.07

Previous: $18.75-9.0%
Aircraft at End of Period

1.5K

Previous: 1.5K-0.1%
Free Cash Flow

$1.34B

Previous: $320M+318.1%
Net Income

$1.34B

Previous: $476M+181.1%
Operating Income

$2.16B

Previous: $1.02B+112.7%
Gross Profit

-$3.83B

Previous: -$5.06B+24.3%
Cash & Equivalents

$614M

Previous: $401M+53.1%
Total Assets

$67.3B

Previous: $68B-1.0%

Revenue & EPS history

American Airlines · Revenue · Quarterly

$14.1B

Q2 2023+4.7%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

American Airlines · $14.1B total across 3 segments · Q2 2023

  • Passenger
    $13B+6.2%
  • Other
    $880M+1.0%
  • Cargo
    $197M-39.9%

Forward guidance

The company expects its third-quarter 2023 adjusted earnings per diluted share to be between $0.85 and $0.95. American now expects its full-year 2023 adjusted earnings per diluted share to be between $3.00 and $3.75. The company’s forecasts include the estimated impact of anticipated new labor agreements.

Tailwinds

  • Third-quarter 2023 adjusted earnings per diluted share to be between $0.85 and $0.95.
  • Full-year 2023 adjusted earnings per diluted share to be between $3.00 and $3.75.
  • Forecasts include the estimated impact of anticipated new labor agreements.
  • Demand trends remain strong.
  • Fuel price forecast is favorable.

Headwinds

  • Guidance excludes the impact of special items.
  • The company is unable to reconcile certain forward-looking projections to GAAP.
  • New labor agreements may impact earnings.
  • Weather and air traffic control challenges.
  • Potential economic slowdown.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+0.7%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+10.5%

Q4 2018

Best reaction

-15.8%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+1.2%+20.3%
Q4 2025-6.6%-8.7%-4.3%
Q3 2025+3.8%+5.1%+6.5%
Q2 2025-2.2%+0.8%-1.5%
Q1 2025+3.1%+6.2%+20.1%
Q4 2024-8.7%-8.1%-18.4%
Q3 2024+2.5%+7.7%+12.1%
Q2 2024+4.4%+5.8%+2.2%
Q1 2024-0.3%-2.9%-0.6%
Q4 2023+8.6%+4.3%+8.6%
Q3 2023-2.5%-1.3%+8.2%
Q2 2023-6.3%-10.5%-19.1%
Q1 2023+7.1%+8.1%+12.6%
Q4 2022+1.0%-0.7%-4.3%
Q3 2022-2.0%+2.1%+0.4%
Q2 2022-10.1%-11.7%-6.8%
Q1 2022+3.6%-3.6%-16.5%
Q4 2021-5.8%-1.6%-0.4%
Q3 2021-1.9%-0.7%-1.2%
Q2 2021-0.9%+0.3%-13.6%
Q1 2021+0.5%+3.6%+7.4%
Q4 2020+3.7%+0.2%+26.4%
Q3 2020-1.1%-11.9%-1.7%
Q2 2020+0.3%+3.6%+7.0%
Q1 2020-15.8%-24.7%-16.9%
Q4 2019+1.2%-1.5%+1.8%
Q3 2019+9.1%+9.3%+1.4%
Q2 2019-9.7%-11.2%-26.5%
Q1 2019+1.1%+1.5%-12.7%
Q4 2018+10.5%+14.7%+12.1%
Q3 2018+7.0%+14.2%+25.1%
Q2 2018+3.9%+3.5%+1.6%
Q1 2018-4.1%-4.2%-0.8%
Q4 2017-3.1%-4.0%-2.6%
Q3 2017-6.8%-8.2%-4.8%
Q2 2017+0.9%+0.9%-9.5%
Q1 2017-8.1%-5.5%+5.0%
Q4 2016-9.5%-11.2%-6.7%
Q3 2016-1.8%-2.3%+13.9%
Q2 2016+2.4%+3.5%+4.4%
Q1 2016-7.5%
Q4 2015+3.3%
Q3 2015+1.0%
Q2 2015-5.8%
Q1 2015+0.8%
Q4 2014-8.7%
Q3 2014+7.5%
Q2 2014-3.8%
Q1 2014-2.9%
Q4 2013+9.3%
Q3 2013+3.2%
Q2 2013+2.3%
Q1 2013-1.8%
Q4 2012+9.3%
Q3 2012+2.8%
Q2 2012+1.7%
Q1 2012-1.6%
Q4 2011+1.1%
Q3 2011-0.2%
Q2 2011-1.6%
Q1 2010-1.5%
Q1 2011-2.1%
Q4 2008-1.6%
Q4 2010-1.6%
Q3 2009+6.5%
Q3 2010+6.5%
Q2 2009+10.4%
Q2 2010+10.4%
Q4 2009+10.4%

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