After American Airlines Group (NASDAQ:$AAL) filed an 8-K report with the SEC detailing its operating performance for the third quarter, the company’s stock increased 5.1% in early trading Tuesday, October 10.
Even though the company had to cancel roughly 8,000 flights due to Hurricanes Harvey, Irma, and Maria in Q3, the Fort Worth, Texas-based company said its total revenue per available seat mile for the quarter will be up “approximately 0.5 to 1.5 percent” in comparison to Q3 last year.
According to management, these results are better than the “flat to up 1.0 percent” guidance it had previously reported “due to stronger than anticipated yield performance.” But wait, there’s more. American Airlines disclosed that because its operations are better than forecast, its “pre-tax margin excluding net special items” will be “approximately 9.0 to 11.0.”
If you’re interested in the airline industry and you’re leaning towards AAL stock, but you are still curious as to what the future holds, American Airlines also promised that “fourth quarter TRASM growth vs. 2016 will exceed third-quarter growth.”
Last week, American Airlines CEO Doug Parker said his company isn’t “ever going to lose money again.” Parker has been CEO of American Airlines and affiliated companies since September 1, 2001.
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