American Airlines (NASDAQ:AAL) has updated its earnings forecast for the first quarter of 2024 amid rising fuel costs.
The carrier expects to pay an average of between $2.80 and $2.90 per gallon of jet fuel in the quarter, compared to prior estimate of ~$2.65 to $2.85.
Based on these updated assumptions, quarterly adjusted loss per diluted share is now estimated to be at the low end of the prior guidance range of approximately -$0.15 and -$0.35, compared to Wall Street estimates of -$0.23 a share.
Available seat miles (ASMs) are still estimated to grow +6.5% to +8.5% year-over-year in Q1, with total revenue per available seat mile projected to fall -3.5% to -5.5% year-over-year. Forecast for cost per available seat mile, excluding fuel and net special items, also remains unchanged at +2% to +4% Y/Y.
The airline company also reaffirmed its full-year 2024 outlook, expecting adjusted earnings per diluted share in the range of $2.25 and $3.25 vs. $2.51 consensus.
Shares of American Airlines (AAL) were down over 4% premarket on Tuesday
