American Airlines Group (NASDAQ:AAL) saw a decline in trading after revising its earnings forecast for the first quarter. The airline now anticipates an adjusted loss per share for Q1 at the lower end of its previous projection. Initially, AAL had forecasted a Q1 loss ranging from $0.15 to $0.35 per share, while analysts had estimated a loss of $0.23 per share.
AAL updated its Q1 guidance to account for escalating fuel costs, now expecting to pay an average of between $2.80 and $2.90 per gallon of jet fuel in the first quarter, compared to its previous estimate ranging from $2.65 to $2.85 per gallon.
The company reaffirmed its FY24 outlook, anticipating adjusted earnings in the range of $2.25 and $3.25 per diluted share, contrasting with Street estimates of $2.51 per share.
Is American Airlines Stock a Buy or Sell?
Analysts remain sidelined about AAL stock with a Hold consensus rating based on four Buys, three Holds, and two Sells. AAL stock has increased by more than 6% year-to-date, and the average AAL price target of $17.52 implies an upside potential of 24.1% at current levels.
