American Airlines Earnings: Outfitting Premium Cabins to Stay Competitive
American Airlines reported a $151 million operating profit on $13.7 billion of revenue in the third quarter.
Despite flat revenue, unit revenue declined nearly 2% from the second quarter of 2024, while structural unit costs grew 4%.
Management described plans to reconfigure its planes to fit more premium seats.
Why It Matters
American Airlines faces stiff competition from United Airlines and Delta Air Lines, with slower top-line growth anticipated in 2025 and rising unit costs due to increased labor costs.
The Bottom Line
The fair value estimate for American Airlines has been increased to $12.80 per share from $10.40, following numerous offsetting adjustments.
Author's summary: American Airlines stock is fairly valued.
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