Shares of American Airlines (NASDAQ: AAL) were on an upswing in pre-market trading on Tuesday as the airline stated in an SEC filing that it expects to generate revenues of $13.5 billion, up 13% versus the third quarter of 2019.
The airline’s total revenue per available seat mile (TRASM) in Q3 is anticipated to be up 25% versus the same period in 2019 and above AAL’s earlier guidance between 20% and 24%.
However, AAL flew 68.6 billion available seat miles in Q3, a drop of 9.6% versus the same period in 2019. AAL had guided for capacity to be between 8% and 10% lower than in 2019.
AAL has projected an operating margin of around 7% in Q3.
Is American Airlines a Buy or Sell?
Analysts are sidelined about American Airlines with a Hold consensus rating based on seven Holds and one Sell.
The average price target for AAL stock is $15.38 implying an upside potential of 27.6% at current levels.
