Shares of American Airlines and Alaska Airlines diverged Thursday following their earnings results. American Airlines topped Q4 views, but tumbled on its outlook. Alaska Air surged following its report.
American Airlines earnings increased to 86 cents per share from 29 cents last year. Revenue rose 4.6% to a record $13.66 billion.
FactSet analysts expected earnings of 66 cents per share on $13.43 billion in revenue.
However, American Airlines guidance pointed to a loss of between 20 cents and 40 cents per share for the first quarter, based on present demand trends and the current fuel price forecast. The forecast is well below FactSet views for a 4 cent loss.
The company guided full-year earnings between $1.70 and $2.70 per share adjusted, while analysts expect earnings of $2.42 per share.
American Airlines Stock Grounded
AAL stock tumbled 8.7% Thursday.
Like other airlines, AAL stock is working on the fifth month of a steep rally, ending Wednesday up nearly 87% from an August low.
Thursday's move pushed American below short-term support at its 21-day moving average, but was not yet threatening a break of 50-day support.
Alaska Airlines Earnings
Alaska Airlines reported earnings of 97 cents per share adjusted, increasing from 30 cents per share last year and beating FactSet views for 47 cents.
Revenue jumped 38% to $3.54 billion, also ahead of forecasts for $3.44 billion.
Capacity rose 2.5% during the quarter with a 7% increase in revenue per available seat mile (RASM).
Alaska Airlines guided for a Q1 loss of between 70 cents and 50 cents per share, but still slightly better than FactSet estimates for a 75 cent loss.
The airline expects capacity to increase 2.5% to 3.5%, with RASM up in the high-single digits.
For 2025, Alaska Airlines expects earnings greater than $5.75 per share with a 2% to 3% increase in capacity.
FactSet expects full-year earnings of $5.97 per share on 23% revenue growth to $14.48 billion.
Alaska Airlines Stock Takes Off
ALK stock swung 2.2% higher Thursday, paring its early gain of 4%.
Shares of Alaska have recently bounced narrowly back and forth, but held firm support at the stock's short-term 10-day moving average.
Up 6% in January through Wednesday's close, the stock has rallied 111% from an August low.
Thursday's early move did not set shares up for a buying opportunity, but implied a bullish third straight rebound off the 10-day line.
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