Blog Coverage American Airlines Reported February Traffic, Observed Record Operational Performance

Upcoming AWS Coverage on Controladora Vuela Compania de Aviacion Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 10, 2017 / Active Wall St. blog coverage looks at the headline from American Airlines Group Inc. (NASDAQ: AAL) as the Company reported its February traffic results and year-to-date 2017 traffic results on March 09, 2017. The Company posted total passenger load factor of 77.3% for February 2017, a 0.3% up from February 2016. American Airlines currently operates 6,700 flights on an average, per day, to more than 350 destinations across 50 countries. Register with us now for your free membership and blog access at:

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One of American Airlines Group’s competitors within the Major Airlines space, Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE: VLRS) (“Volaris”), reported on February 17, 2017, its financial results for the fourth quarter and full year 2016. AWS will be initiating a research report on Volaris in the coming days.

Today, AWS is promoting its blog coverage on AAL; touching on VLRS. Get all of our free blog coverage and more by clicking on the link below:

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Revenue Passenger Miles (RPMs)

American Airlines reported total Revenue Passenger Miles for February 2017 to be 15.15 billion observing a 3.3% decline from the 15.67 billion Revenue Passenger Miles for February 2016. The decline in RPMs is viewed as a step to trim the supply of seats in an order to boost revenue. The breakdown of the respective segments is as follows:

Domestic Revenue Passenger Miles for February 2017 was 8.87 billion, down 5.2% from 9.36 billion RPMs for February 2016.
The Atlantic segment observed a 5.4% decline in net RPMs from 1.22 billion for February 2016 to 1.15 billion for February 2017.
Net RPMs from Latin America segment stood at 2.25 billion for February 2017, observing an 8.1% decline from 2.45 billion RPM for February 2016.
The Pacific operations reported 1.10 billion RPMs for February 2017, advancing 19.0% from 923.70 million RPMs for February 2016.
Net RPMs from International operations was reported to be 4.50 billion for February 2017 observing a 1.9% decline from 4.59 billion reported RPMs for February 2016.
The Mainline segment observed a 4.1% decline from February 2016, while the regional segment reported a 3.1% surge from February 2016.

Available Seat Miles (ASMs)

The Company saw net Available Seat Miles decline by 3.7% from 20.37 billion ASMs for February 2016 to 19.61 billion ASMs for February 2017. Subject to decline in ASMs, the planes were slightly fuller on average compared to the same period in February 2016. The breakdown of the respective segments is as follows:

Net ASMs from the Domestic segment was 10.93 billion for February 2017, observing a 5.0% decline from 11.50 billion for February 2016.
The Atlantic segment reported a 10.3% decline, from 2.05 billion ASMs in February 2016 to 1.84 billion ASMs for February 2017.
The Latin America segment reported a 9.4% decline from 3.31 billion ASMs in February 2016 to 3.00 billion ASMs for February 2017.
The Pacific segment observed a 4.0% surge from 1.16 billion ASMs in February 2016 to 1.42 billion ASMs for February 2017.
Net ASMs from the International segment fell 4.0% to 6.26 billion for February 2017.
The Mainline segment observed a 4.6% decline from February 2016 to bring the net ASMs for the segment at 17.19 billion for February 2017, while the regional segment ASMs advanced 3.1% from February 2016.

Other Parameters

The Company reported the total load factor to gain by 0.3 percentage points from 77% for February 2016 to 77.3% for February 2017. The domestic segment observed a 0.1% decline from February 2016 (81.3%) to February 2017 (81.2%). Load factor for the international segment was reported to be 72% for February 2017, observing a 1.5% surge from 70.5% for February 2016. The total enplanements for February 2017 were reported at 14.07 million for February 2017, declining 2.5% from 14.43 million enplanements for February 2016.

Operational Performance Details

American Airlines set several operational records for the month ending February 28, 2017. The Company observed a system wide mainline on-time departure rate of 74.8%, which was the best performance since the merger with US Airways in 2013. According to a preliminary data reported to the Department of Transportation, the Company observed planes arriving on schedule, 85.2% of the time. Additionally, the Company reported a completion factor of 98.8% as reported to the Department of Transportation.

Revised Guidance

American Airlines expects its Q1 FY17 total revenue per available seat mile (TRASM) to be up about 1.5% to 3.5% y-o-y against the previously announced guidance of 2.5% to 4.5%. The decrease is attributed to the firm’s year-to-date system wide completion factor of 98.9% for the same period in FY16. The Company continues to expect its Q1 FY17 pre-tax margin excluding special items, to be in the range of 3% to 5%.

Stock Performance

American Airlines’ share price finished the March 09, 2017, trading session at $43.33, sliding 3.48%. A total volume of 9.33 million shares exchanged hands, which was higher than the 3 months’ average volume of 6.40 million shares. The stock has advanced 12.35% and 5.14% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 9.07 and has a dividend yield of 0.92%. At Thursday’s closing price, the stock’s net capitalization stands at $22.30 billion.

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