American Airlines Did Not Prepare for Takeoff, As CCO Resigns and Guidance Falls, United Maintains Outlook

American Airlines (AAL) announced the departure of its Chief Commercial Officer who will depart June 2024 and provided updated Q2 guidance. According to FactSet the updated Q2 guidance is as follows:

  • EPS $1.00-1.15 ex-items vs prior guidance $1.15-1.45
  • Adjusted operating margin to ~8.5%-10% vs prior guidance ~9.5%-11.5%
  • Reaffirms Available seat miles (vs. 2Q 2023) +7%-9%,
  • TRASM (5%) to (6% ) y/y vs prior (1%)-(3%) y/y
  • CASM-ex Flat to +1% y/y vs prior +1% to 3%

Street analysts have overall viewed this report negatively to varying degrees as some thought the company’s previous guide was aggressive others are questioning the strategic positioning for the company related to the CCO departure.

Meanwhile, United Airlines (UAL) reaffirmed their guidance stating it expects Q2 adjusted EPS of $3.75-$4.25 vs FactSet $4.02.

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About the Author

American Airlines Did Not Prepare for Takeoff, As CCO Resigns and Guidance Falls, United Maintains Outlook

Ashlee Vogenthaler

Markets Editor