Latest news with #AmericanAirlinesGroup
Yahoo
01-05-2025
- Business
- Yahoo
Shareholders Can Be Confident That American Airlines Group's (NASDAQ:AAL) Earnings Are High Quality
American Airlines Group Inc.'s (NASDAQ:AAL) strong earnings report was rewarded with a positive stock price move. We have done some analysis, and we found several positive factors beyond the profit numbers. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To properly understand American Airlines Group's profit results, we need to consider the US$688m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect American Airlines Group to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from American Airlines Group's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think American Airlines Group's earnings potential is at least as good as it seems, and maybe even better! And on top of that, its earnings per share increased by 36% in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For instance, we've identified 3 warning signs for American Airlines Group (2 don't sit too well with us) you should be familiar with. This note has only looked at a single factor that sheds light on the nature of American Airlines Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Times
01-05-2025
- Business
- Business Times
Airbus tells US airlines they'll need to pay their own tariffs
[LONDON] Airbus said it will not cover the cost of tariffs on its planes imported by US airlines, setting up a clash with carriers unwilling to shoulder surcharges imposed by US President Donald Trump. The European planemaker is responsible for any added duties on supplies it imports to its own aircraft assembly plant in Mobile, Alabama, and then sells on to customers, Airbus chief executive officer Guillaume Faury said on a conference call after reporting first-quarter results. 'However, when we are exporting from Europe to United States, that's an import for the customers,' Faury said. 'They are also not very much willing to pay tariffs, but it's on them.' The comments show how the aviation industry is scrambling to adjust to new fees filtering through an aerospace supply chain that's been shielded from tariffs for decades. Faury said Airbus is working to mitigate the surcharges, though the process has strained a fragile system that already relies on the free flow of thousands of components across borders. 'I can tell you that the Airbus perspective is that they are not good for us and for the European industry, but they are not good as well for the US industry,' Faury said of the tariffs, advocating for a return to a duty-free status. Airlines including Delta Air Lines and American Airlines Group have said they are not willing to pay the extra cost for planes. However, there are workarounds in some cases – Delta, for example, is routing a new Airbus A350-900 built in Toulouse, France, through Tokyo, Bloomberg reported this week, echoing a similar strategy the airline took in 2019 when a trade dispute led to short-lived US tariffs. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We are looking at opportunities to export to somewhere else than the US, especially for airlines who have international operations,' Faury said. 'We are finding arrangements with several customers, with their network, their partners on how to deal with the situation.' With its first-quarter results, Airbus cautioned that tariffs have injected further uncertainty into an aviation industry supply chain that still has not fully recovered from Covid-19. The company reiterated that it still aims to deliver about 820 commercial aircraft this year, though the target does not include the fallout from tariffs and assumes 'no additional disruptions to global trade or the world economy', according to a statement on Wednesday (Apr 30). Deliveries this year will be backloaded, 'reflecting the specific supply chain challenges we are facing', Airbus said. Airbus expects deliveries to be soft in the first half of 2025 as it builds planes that do not yet have engines, and so cannot be delivered to airlines. In the first quarter, Airbus reported adjusted earnings before interest and tax of 624 million euros (S$709 million) on revenue of 13.54 billion euros. Net income came in at 793 million euros, beating the estimate of 532.6 million euros in a Bloomberg survey, after the company revalued certain equity investments. Boeing has also been affected by Trump's tariff onslaught. China retaliated with its own fees, and told its carriers that they should refrain from taking Boeing jets. While Faury acknowledged the move by the country might be 'good news' for the European planemaker, he said it's in the interest of the entire industry to roll back the levies. BLOOMBERG
Epoch Times
24-04-2025
- Business
- Epoch Times
American Airlines' First-Quarter Earnings Weighed Down by Slowing Demand, DC Accident
American Airlines Group had a bumpy ride in the first quarter as losses continued to pile up for the nation's largest airline due to myriad issues that have hammered the company's stock and diminished the carrier's global operations. During a conference call with analysts on April 24 to highlight the company's first-quarter Although the Texas carrier had gained positive momentum over the past few years in upgrading its aging fleet, managing and cutting costs, and strengthening its balance sheet, Isom said the company hit strong headwinds in early 2025 as customer demand declined significantly. At the same time, a midair collision over the Potomac River alongside Washington, D.C., cut profits and led to a federal investigation and safety concerns about the company's fleet operations. Further, Isom expressed concerns about the U.S. government's tariff and visa policy, while other economic uncertainties on the runway ahead have grounded the airline's earnings in the first three months of the year. 'It goes without saying that we're in a challenging economic environment, which has had a significant impact on the industry,' Isom said. 'The economic uncertainty in the market has put pressure on demand and impacted American's first quarter results and second quarter outlook.' For the period ended March 31, American reported a net loss of $473 million, or $0.72 per diluted share, compared to a net Related Stories 4/23/2025 4/23/2025 Wall Street had forecasted the carrier to report a loss of $0.50 per share and revenue of $12.71 billion for the quarter, according to FactSet. In providing more color about the company's difficult quarter, Isom said the impact of the collision between American Flight 5432 and a U.S. Army helicopter on Jan. 29 reduced company revenue by $200 million. That fatal crash near Washington, D.C.'s Ronald Reagan Airport nearly three months ago killed all 67 people aboard. Isom also said the company's revenue per available seat mile (RASM), a key industry metric that highlights how much income an airline generates per seat, fell 0.7 percent year over year as consumer spending on domestic travel decelerated in the first quarter. On a positive note, the American chief executive said the Texas carrier has completed its aircraft fleet upgrade, cut management costs across the company, and will exit 2025 with $750 million in cost savings. Still, Isom said, American Airlines' plan to return the company to profitability and add seat capacity will likely depend on a reversal of slumping consumer demand and improving economic conditions. 'We remain nimble and take action as conditions warrant,' Isom said, adding that the airline may need to adjust off-flying hours, retire older aircraft, and defer delivery of new ones to cut costs and remain profitable. In response to industry analysts' questions about the challenges ahead for American and the airline industry, including the current tariffs and trade policy, Isom noted that the travel industry generates $1.3 trillion in direct spending in the United States and supports one out of every 11 jobs. He said America is committed to working with the federal government to make the United States a welcome destination for international travelers, especially with the FIFA World Cup in 2026, the 2028 Los Angeles Olympics, and other major global events ahead. 'That means expanding visa-free travel, lowering visa processing times, and expediting the deployment of new technologies to make travel more seamless and secure,' said Isom. He also stated that upgrading critical infrastructure is another important issue facing the airline industry, with the most pressing being the nation's air traffic control system. Looking ahead, American said it expects its second-quarter 2025 earnings to be between $0.50 and $1.00 per share. As noted, America is also withdrawing its full-year guidance and plans to provide an update as the economic outlook becomes clearer. As of 3 p.m. EST on April 24, American shares were up 3.38 percent at $9.64 on the Nasdaq. However, the Texas carrier's stock has traded down nearly 32 percent over the past 12 months.
Bloomberg
24-04-2025
- Business
- Bloomberg
Stock Movers: American Airlines, Comcast, IBM
On this episode of Stock Movers: - American Airlines Group (AAL) shares are up. However, the company withdrew its full-year earnings outlook, joining a growing number of companies hedging their bets on the broader economy. The looming impact of higher costs from the Trump administration's trade policy is making it difficult for Corporate America to forecast how the year will play out as consumers brace for economic pain. - Comcast Corp. (CMCSA) shares fell to their lowest level in 2 1/2 years after the company reported first-quarter losses of pay-TV and broadband customers that exceeded analysts' estimates, a reflection of the growing competition from streaming and wireless providers. Comcast, the largest US cable provider, lost 199,000 domestic broadband customers during the first quarter, according to a statement Thursday, steeper than analysts' estimates of 144,500. Pay-TV customers shrank by 427,000, compared with Wall Street projections for a loss of 409,300. - IBM (IBM) shares fell the most in a year on Thursday after reporting results that showed strong profit while also suggesting that economic uncertainty and US government cost cuts may dent the company's business. First-quarter sales increased almost 1% to $14.5 billion, IBM said Wednesday in a statement. Profit, excluding some items, was $1.60 per share. Both results exceeded analysts' average estimates, according to data compiled by Bloomberg.
Yahoo
24-04-2025
- Business
- Yahoo
American Airlines Group (NasdaqGS:AAL) Reports Q1 Loss Of US$473 Million Amid Flat Revenue
American Airlines Group recently reported mixed operational and financial results, revealing a decline in revenue passenger miles and an increase in net loss, which might have been a factor in its 1.48% share price dip over the past week. This drop comes despite broader market trends showing a rise, with the S&P 500 and Nasdaq up by 2.3%. This highlights a disparity between the company's performance and the general market upswing, whereby American Airlines' disappointing results contrasted with the optimism seen in tech sectors and other major indexes. You should learn about the 4 weaknesses we've spotted with American Airlines Group (including 2 which are a bit concerning). Find companies with promising cash flow potential yet trading below their fair value. The recent dip in American Airlines Group's share price could influence investor sentiment concerning its future prospects. Despite this recent decline, it's important to note that the company's total return, which includes both share price and dividends, was a 22.40% decline over the past five years. This highlights persistent challenges, as the airline underperformed compared to general market trends, where the US Airlines industry returned 2.1% less than the US Market over the past year. The mixed financial results, with a reported revenue of US$54.21 billion and earnings of US$846 million, might impact future projections. Analysts are concerned that operational challenges and high costs could hinder revenue growth and profitability, potentially affecting forecast revenue growth of 4.4% annually and an increase in earnings to US$2 billion by 2028. The recent fluctuations in share price might intensify scrutiny of these forecasts and the company's ability to meet them, especially given the share price is trading at a substantial discount to the consensus price target of US$14.47. Evaluate American Airlines Group's historical performance by accessing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AAL. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
