American Airlines Stock Is Sliding: What's Going On?
Portfolio Pulse from Adam Eckert
American Airlines Group Inc (NASDAQ:AAL) shares dropped after the company updated its fuel price guidance for Q1, expecting to pay between $2.80 and $2.90 per gallon, up from the previous $2.65 to $2.85. This adjustment leads to an anticipated Q1 adjusted loss at the lower end of the previously guided range of 15 to 35 cents per share, while full-year 2024 guidance remains unchanged. The company pays a dividend yielding 1.22% annually as of March 12.
March 12, 2024 | 1:32 pm
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American Airlines updated its Q1 fuel price guidance, leading to a potential adjusted loss at the lower end of its prior guidance. The company also pays a 1.22% annual dividend as of March 12.
The increase in fuel price guidance directly impacts American Airlines' operational costs, leading to a potential increase in its Q1 adjusted loss. This news is likely to negatively affect investor sentiment in the short term, as higher operational costs can erode profitability. The dividend yield provides a slight buffer but may not fully mitigate the negative impact of the increased costs.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100