American Airlines (NASDAQ:AAL) gained in pre-market trading after it issued a bullish Q2 forecast even as it swung to a loss in the first quarter. The airline has forecasted Q2 adjusted earnings to be in the range of $1.15 to $1.45 per diluted share, which is above analysts’ forecasts of earnings of $1.18 per share. For FY24, AAL projects adjusted earnings between $2.25 and $3.25 per diluted share.
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AAL Q1 Results
In the first quarter, AAL reported an adjusted loss of $0.34 per diluted share, compared to earnings of $0.05 per share in the same period a year ago. This loss was wider than analysts’ estimates of a loss of $0.27 per share.
The company generated Q1 operating revenues of $12.6 billion, which were up by 3.1% year-over-year and in line with consensus estimates.
In the first quarter, AAL slashed its debt by around $950 million, and has now achieved 80% of its target to reduce its total debt by $15 billion by the end of 2025.
What Is the Future of AAL Stock?
Analysts remain cautiously optimistic about AAL stock, with a Moderate Buy consensus rating based on nine Buys, one Hold and two Sells. Over the past year, AAL has increased by more than 8%, and the average AAL price target of $18.62 implies an upside potential of 33.7% from current levels. These analyst ratings are likely to change following AAL’s Q1 results today.
