American Airlines Trims Top End of 4Q TRASM View
January 10 2020 - 9:02AM
Dow Jones News
By Michael Dabaie
American Airlines Group Inc. (AAL) said Friday it expects its
fourth quarter total revenue per available seat mile to be flat to
up about 1% year-over-year, versus its previous guidance of flat to
up 2%.
The company said the change in midpoint from previous guidance
is due primarily to lower-than-planned yields in the
pre-Thanksgiving period and higher completion factor throughout the
quarter.
"Demand remains strong and December revenue performance exceeded
the company's expectations," the airline said in an investor
relations update filed with the Securities and Exchange
Commission.
American said it sees fourth-quarter total pre-tax net special
items of about $110 million, with about $20 million non-cash. The
special items include fleet restructuring costs and merger
integration expenses, offset by adjustments on equity and other
investments.
The airline guided for fourth quarter total cost per available
seat mile excluding fuel and net special items to be up about 1% to
3% on year, from previous guidance of up 2% to 4%, due primarily to
improved operational performance and a higher completion
factor.
Gross aircraft capex and net pre-delivery payments for the
fourth quarter are lower than previous guidance due primarily to
the delivery dates of certain Boeing Co. (BA) MAX aircraft moving
from the fourth quarter to 2020, American said.
American said previously it reached a confidential agreement
with Boeing on compensation for financial damages incurred in 2019
due to the grounding of the 737 MAX 8 aircraft. American said it
doesn't expect any material financial impact of the agreement to be
realized in its fourth quarter 2019 earnings.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
January 10, 2020 08:47 ET (13:47 GMT)
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