UAL - American Airlines Earnings Preview: Decent Q1 But Risky Stock

2024-04-17 04:49:20 ET

Summary

• American Airlines is expected to report Q1 results unaffected by major operational issues, unlike its competitors United Airlines and Alaska Air Group.
• Modest revenue growth of 3% is expected due to a 7.5% increase in capacity, offset by a 4.5% decline in per-unit revenues.
• The company's inferior cost structure and high leverage make it a risky investment in the volatile airline industry.

American Airlines ( AAL ) is expected to report Q1 results and hold its earnings conference call on April 25, ahead of the closing bell. Because the Texas-based airline "dodged the Boeing ( BA ) bullet" this time, since it does not operate 737 MAX 9 aircraft, its key Q1 numbers should be largely unaffected by major operational issues, unlike United Airlines' ( UAL ) and Alaska Air Group's ( ALK )....

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