Investor Alert

Jan. 11, 2022, 7:55 a.m. EST

American Airlines shares jump 2.2% premarket after airline raises its Q4 guidance

American Airlines Group Inc. shares (NAS:AAL) jumped 2.2% in premarket trade Tuesday, after the airline updated its fourth-quarter guidance to reflect a less bad than expected performance. American said it now expects revenue to be down about 17% compared with the fourth quarter of 2019, before the start of the pandemic, better than previous guidance of down 20%. The company flew 61.1 billion total available seat miles in the quarter, down 13% versus the prior guidance of down 11% to 13%. The company expects cost per available seat mile, or CASM, a measurement of efficiency, to be up 13% to 14% compared to the fourth quarter of 2019, compared with earlier guidance of up 8% to 10%. "This change versus previous guidance is mainly due to lower capacity, the Company's fourth quarter holiday operational incentive program, and a write down of excess spare parts inventory," the company said in a regulatory filing. It expects its liquidity to stand at about $15.8 billion at quarter end. Shares have gained 25% in the last 12 months, while the U.S. Global JETS ETF (PSE:JETS) has gained 0.1% and the S&P 500 (S&P:SPX) has gained 22%.

Link to MarketWatch's Slice.