American Airlines Group Inc. (NASDAQ: AAL) said on Thursday that it swung to a wider-than-expected loss in the fiscal first quarter as the COVID-19 crisis continued to wreak havoc on demand for air travel. The air carrier’s revenue was lower than what analysts had anticipated, but cash burn continued to show improvement in Q1. Chief Executive Doug Parker said on Thursday:
“Looking forward, with the momentum underway from the first quarter, we see signs of continued recovery in demand.”
American Airlines shares were reported more than 2% up in premarket trading on Thursday. Including the price action, the stock is now exchanging hands at £15.57 per share. In comparison, it had started the year 2021 at a much lower £10.91 per share. If you want to invest in the stock market online, you will need a reliable stockbroker – here is a comparison of the top few to make selection easier for you.
American Airlines’ Q1 financial results versus analysts’ estimates
American Airlines reported £900 million of net loss in the first quarter that translates to £1.42 per share. In the same quarter last year, its net loss stood at a sharply higher £1.61 billion, or £3.79 per share.
Adjusted for one-time items, the airline holding company lost £3.11 per share in Q1. American Airlines generated £2.89 billion of revenue in the recent quarter that represents a massive 52.9% annualised decline.
According to FactSet, experts had forecast the company to post £2.91 billion of revenue in the first quarter. Their estimate for adjusted per-share loss was capped at a slightly narrower £3.10. The news comes a week after peer United Airlines reported £970 million of loss in the first quarter.
American Airlines average daily cash burn narrowed to £19.47 million
Load factor, as per the Fort Worth-based company, came in at 59.5% in Q1, compared to 72.7% last year and 63.3% expected. Passenger revenue in the recent quarter was down 58.6%. American Airlines burned £19.47 million daily on average. In the prior quarter (Q4), its average daily cash burn registered at a higher £21.63 million.
In separate news from the United States, consumer credit reporting agency Equifax also published market-beating quarterly results on Wednesday after the bell.
American Airlines performed largely downbeat in the stock market last year with an annual decline of close to 45%. At the time of writing, the Nasdaq-listed company is valued at £9.72 billion.
The post American Airlines swings to a wider than expected loss in fiscal Q1 appeared first on Invezz.
from USA – Invezz https://ift.tt/3nfjCAn
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments