Stock Monitor: Controladora Vuela Compania de Aviacion Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 18, 2018 / If you want access to our free earnings report on American Airlines Group Inc. (NASDAQ: AAL), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AAL. The Company reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The world's largest airline beat earnings estimates and recorded a sixth consecutive quarter of positive unit growth. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For Q1 2018, American Airlines' total revenues jumped 5.9% to a first quarter record of $10.40 billion on a y-o-y basis compared to $9.82 billion in Q1 2017, driven by a robust demand for air travel. The Company's revenue numbers lagged analysts' estimates of $10.41 billion.
American Airlines' cargo revenues jumped 18.8% to $227 million in the reported quarter, driven primarily by a growth in volume of 10.9% and an increase in cargo yield of 7.1%. The Company's other revenues were up 10.0% to $694 million on a y-o-y basis.
For Q1 2018, American Airlines' passenger revenue per available seat mile (PRASM) grew in all geographic regions, with a notable strength in Latin America. The Company's total revenue per available seat mile increased by 3.5% in the reported quarter compared to the year ago same period, on a 2.3% increase in total available seat miles. This marked the Company's sixth consecutive quarter of positive unit revenue growth and the second quarter in a row where all geographic regions showed PRASM growth on a y-o-y basis.
During Q1 2018, American Airlines' total operating expenses jumped 9.8% to $10.0 billion on a y-o-y basis, driven by an increase in consolidated fuel expenses of 25.7%. If the fuel prices remained unchanged versus Q1 2017, the Company's total expenses would have been $412 million lower.
American Airlines' total cost per available seat mile (CASM) was $0.1515 in Q1 2018, up 7.3% on a y-o-y basis. Excluding fuel and special items, the Company's total CASM was $0.1157 in the reported quarter, up 2.8% versus the year ago comparable period.
For Q1 2018, American Airlines reported a pre-tax profit of $273 million compared to $535 million in Q1 2017. On a non-GAAP basis, the Company posted a pre-tax profit of $468 million compared to $661 million in the year earlier corresponding quarter.
American Airlines recorded a net income of $186 million, or $0.39 per diluted share, in Q1 2018 compared to $340 million, or $0.67 per diluted share, in Q1 2017. On a non-GAAP basis, the Company posted earnings per share (EPS) of $0.75 versus $0.82 in the year earlier same quarter. American Airlines' earnings beat Wall Street's estimates of $0.72 per share.
During Q1 2018, American Airlines returned $498 million to its shareholders through share repurchases and dividends, bringing the total to $11.9 billion since mid-2014. These repurchases have reduced the Company's share count by 38% to 467.4 million shares as of March 31, 2018.
In April 2018, American Airlines announced an order for 47 new Boeing 787 widebody aircraft, consisting of 22 787-8s scheduled to begin arriving in 2020, and 25 787-9s scheduled to begin arriving in 2023. The 787-8s will replace the Company's Boeing 767-300s, while later 787-9 deliveries will replace Airbus A330-300s and older 777-200 widebody aircraft.
Furthermore, American Airlines deferred 40 737 MAX aircraft and 3 Airbus A321neo aircraft. The Company noted that these changes will better align future aircraft deliveries with planned aircraft retirements, and reduce planned capital expenditure by approximately $200 million in 2019 and $800 million in 2020.
American Airlines updated its adjusted EPS to be between $5.00 and $6.00 for FY18. The Company is expected to commit $1.8 billion in non-aircraft capital expenditure projects for FY18.
Stock Performance Snapshot
May 17, 2018 - At Thursday's closing bell, American Airlines Group's stock slightly declined 0.98%, ending the trading session at $43.63.
Volume traded for the day: 5.32 million shares.
After yesterday's close, American Airlines Group's market cap was at $20.61 billion.
Price to Earnings (P/E) ratio was at 7.83.
The stock has a dividend yield of 0.92%.
The stock is part of the Services sector, categorized under the Major Airlines industry.
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