American Airlines Group Beats On Q1 Earnings

American Airlines Group (AAL – Free Report) came into existence following the Dec 2013 merger of AMR (American Airlines’ parent group) and US Airways. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.

American Airlines Group has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in three of the last four quarters, with an average beat of 20%.

Zacks Rank: Currently, American Airlines Group has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released. 

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: American Airlines Group beat on earnings. Adjusted earnings per share came in at 61 cents per share, beating the Zacks Consensus Estimate of 57 cents. Quarterly earnings declined significantly on a year over year basis.

American Airlines Group, Inc. Price and EPS Surprise

American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote

Revenue: Revenues of $9,624 million were 2% above the year-ago figure. Quarterly revenues edged past the Zacks Consensus Estimate of $9,621.3 million.

Key Stats: American Airlines Group’s bottom-line in the quarter was hurt by higher labor costs. Cost per available seat mile excluding fuel and special items increased 7.6% on a year over year basis. During the quarter, the company returned $563 million billion to its shareholders through the payment of $51 million in dividends and buyback of shares worth $512 million. Furthermore, the carrier also declared a dividend of $0.10 per share. The dividend will be paid on May 30, to the shareholders on May 16. We are impressed by the company’s efforts to reward shareholders through stock repurchases and dividend payments. The company announced the increase in hourly base pay for the its crewmembers (outside of contract negotiations). Total revenue per available seat miles (TRASM) is expected to increase in the band of 3% to 5% in the second quarter. Pre-tax margin excluding special items is projected in the range of 11% to 13%.