Shares of the airliner, American Airlines Group (NASDAQ: AAL) were up at the time of writing in pre-market trading on Wednesday after the company raised its guidance for fiscal Q2. AAL now expects total revenue per available seat mile to improve and fall by only 1% to 3% year-over-year versus its prior guidance of a drop of 2% to 4%, driven by rising demand.
Additionally, AAL now expects to pay an average of between $2.55 and $2.65 per gallon of jet fuel in the second quarter as compared to its earlier forecast in the range of $2.65 to $2.75 per gallon. As a result, the airline now expects its Q2 adjusted operating margin to be between 12.5% and 14.5% (previous guidance in the range of 11% to 13%) and adjusted earnings to be between $1.45 to $1.65 per share versus its earlier forecast of $1.20 to $1.40 per share.
Overall, analysts are sidelined about AAL stock with a Hold consensus rating based on two Buys, six Holds, and two Sells.