American Airlines (NASDAQ: AAL) gained altitude in morning trading on Thursday after the airline raised its Q4 expectations. The airline is expected to announce its Q4 earnings on January 17.
AAL now expects its revenues to grow in the range of 16% to 17% versus the fourth quarter of 2019. The company had guided for a growth rate in the range of 11% to 13% earlier.
Adjusted earnings are expected to come in the range of $1.12 to $1.17 per diluted share in Q4 almost double its prior forecast between $0.50 and $0.70 and well above the consensus estimates of $0.6. AAL also hiked its Q4 adjusted operating margin to be in the range of 10.25% and 10.5% from its prior forecast of 5.5% to 7.5%.
AAL achieved more than half of its goal when it comes to reducing its debt “with total debt down more than $7.5 billion in the first 18 months of the program.”
Analysts are sidelined about AAL stock with a Hold consensus rating based on two Buys, four Holds, and two Sells.
