American Airlines reports June results

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By admin July 10, 2014 14:40

American Airlines reports June results

American Airlines has reported that its June total revenue  passenger miles (RPMs) was up 1% year-over-year at $19.9 billion. Total capacity was up 3.2%, but total passenger load factor fell 1.9% compared with June 2013.

Analysts revised their forecasts for AA after the announcement, with AAL Group now guiding to a 12-13% 2Q pretax margin, up from an initial 10-12% guide and 11.7% implied by the $1.80 consensus. Analysts also expect 3Q consolidated RASM to slow from 2Q’s 6% pace to just 4%, followed by a further slide to 2% in 4Q.

American Airlines’ CEO Doug Parker stated that demand for flights remains strong and that overcapacity will not hurt the industry’s pricing power.

Parker said: “We’re happy with the demand we are seeing for the product throughout the world. There have been increases in capacity, but in response to demand. Demand is up. Capacity is growing as well.”

admin
By admin July 10, 2014 14:40
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