American Airlines Group Inc. ( AAL ) shares are trading higher after the company reported first-quarter financial results and issued second-quarter adjusted EPS guidance with a midpoint above estimates.

Total revenue increased 3.1% to $12.57 billion, just missing estimates of $12.60 billion.

Adjusted operating margin stood at 0.6% in the first quarter vs. 3.7% a year ago.

The company reported an adjusted EPS loss of $(0.34), which missed the consensus estimate of $(0.29).

Related: American Airlines Is ‘A Guide And Beat Story,’ Analyst Says As Stock Gets Upgrade

The company generated an operating cash flow of $2.2 billion and a free cash flow of $1.4 billion in the quarter.

American Airlines ( AAL ) reduced its total debt by nearly $950 million in the first quarter and achieved over 80% of its target of reducing debt by $15 billion by the end of 2025.

Guidance: American Airlines ( AAL ) expects its second-quarter 2024 adjusted EPS of $1.15 – $1.45, versus the consensus of $1.18. 

American reiterated its FY24 adjusted EPS outlook of $2.25-$3.25 versus the consensus of $2.35.

The company expects its second-quarter 2024 capacity to be up 7%-9%, with full-year capacity to be up mid-single digits Y/Y.

The second-quarter total revenue per available seat mile (TRASM) is expected to be down approximately 1%-3% Y/Y.

The company expects its second-quarter cost per available seat mile (CASM-ex), excluding fuel, to be up approximately 1% to 3% Y/Y, with its full-year CASM-ex up approximately 0.5% to 3.5% Y/Y.

Robert Isom, CEO, said, “While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet.”

In March, American Airlines ( AAL ) placed orders for 260 new aircraft, including Airbus A321neo, Boeing 737 MAX 10, and Embraer E175 models.

Investors can gain exposure to the stock via U.S. Global Jets ETF ( JETS ) and Themes Airlines ETF ( AIRL ) .

Also Read: American Airlines Pilots Warn Amid Safety Concerns Surge: Report

Price Action: AAL shares are up 3.45% at $14.40 premarket at the last check Thursday.