American Airlines Group Inc. ( AAL ) reported third-quarter financial results and updated its 2024 EPS outlook.

The airline reported third-quarter total operating revenue growth of 1.2% year-over-year to $13.647 billion, beating the consensus of $13.471 billion.

The adjusted operating margin stood at 4.7% compared to 5.4% a year ago. AAL reported adjusted EPS of $0.30, down from $0.38 a year ago but above the consensus of $0.15.

The company generated an operating cash flow for nine months ended September 30 of ~$3.585 billion and a free cash flow of ~$2.382 billion.

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American Airlines ( AAL ) ended the quarter with ~$11.8 billion of total liquidity and reduced its debt by nearly $360 million.

The company stated that it is more than $13 billion toward its goal of reducing total debt by $15 billion by the end of 2025.

Revenue passenger miles increased by 6.4%, Available seat miles (ASM) were up by 3.2%, and the passenger load factor for the quarter was 86.6% compared to 84% in the same quarter last year.

Total revenue per available seat miles for the quarter declined 2%. The average aircraft fuel price, including related taxes (dollars per gallon), fell 14% YoY to $2.50, and the operating cost per ASM reduced by 4.2%.

Q4 Guidance: American Airlines ( AAL ) expects adjusted EPS to be between $0.25 and $0.50 and adjusted operating margin of ~ 4.5% to 6.5%.

Total capacity is expected to increase by 1% to 3%, TRASM to decline by 1% to 3%, and CASM-ex to increase by 4% to 6%.

2024 Guidance: American Airlines ( AAL ) now expects an adjusted EPS of $1.35 – $1.60 (prior $0.70 – $1.30) versus the consensus of $1.21. It expects a 2024 operating margin of 4.5% to 5.5%.

Price Action: AAL shares are trading higher by 3.7% at $13.31 at the last check Thursday.

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