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American Airlines (NASDAQ:AAL) topped earnings and revenue expectations for the fourth quarter, boosted by strong travel demand and high fares.
The airline reported earnings per share of $1.17, $0.34 above the analyst estimate of $0.83, while revenue came in at $13.2 billion versus the consensus estimate of $12.88B.
Revenue represented American Airlines’ highest fourth-quarter revenue in its history, as travel demand continues to remain robust, despite macroeconomic headwinds. Its revenue performance was also achieved despite flying at 6.1% less capacity than in 2019.
The company and its regional partners operated more than 475,000 flights in the fourth quarter, with an average load factor of 83.9%.
American Airlines said it “outperformed the industry over the December holiday period,” ranking first in completion factor, while it said the momentum has continued into 2023.
“We’re proud to have led the industry in operational performance over the holidays while producing record full-year and fourth-quarter revenues, resulting in a third consecutive quarterly profit and a profit for the full year,” said American Airlines CEO Robert Isom. “As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction.”
Looking forward, the carrier sees FY2023 earnings of $2.50 to $3.50 per share, well above the consensus of $1.89.
American Airlines shares are up over 1% premarket.
