Airline stocks are starting to take off again following a flurry of earnings guidance.
After trailing a few of the larger airline operators, American Airlines (AAL) upgraded their outlook for the company’s next earnings report. The company is set to report earnings results on January 23.
This morning, American significantly raised its Q4 earnings per share guidance range to $0.55-$0.75. The company’s prior guidance was for a range of $0.25-$0.30.
American’s management commented that the company is better positioned to benefit from a stronger-than-anticipated pricing and revenue environment.
That pricing environment has been created by an increase in travel demand as consumers improve their outlook for the economy and spending.
American shares are trading 70% higher than their summer lows. The stock endured heavy selling pressure from March through July after the company’s plans to reorganize its sales approach disappointed.
The boost in optimism from American’s forward-looking guidance is likely to target a return to $25.
