Investing.com - Shares of American Airlines Group (NASDAQ:AAL) rallied in premarket trade on Thursday, after the company provided upbeat earnings guidance for 2019.
The group's shares rose 5.5% in premarket trade to $33.40 after it said it expects its 2019 underlying earnings to be between $5.50 and $7.50 a share this year, above estimates for $5.85.
“We enter 2019 with great momentum," Chairman and CEO Doug Parker said. We are intent upon running the most reliable operation in our post-merger history, pursuing high margin growth opportunities at our most profitable hubs, and executing on a number of valuable revenue and cost saving initiatives,"
"We expect our total revenue per available seat mile to grow faster than our network competitors, and to deliver strong pre-tax earnings growth in 2019. At the midpoint of our guidance, 2019 diluted earnings per share excluding special items would increase approximately 40 percent versus 2018,” he added.
For the current quarter, American Airlines reported adjusted earnings per share of $1.04, above expectations for $1.01 a share.
Revenue totaled $10.94 billion, just below estimates of $10.97 billion.
Driven by a 2.4% increase in passenger yield, passenger revenue per available seat mile (PRASM) grew 1.4% to 14.59 cents.
Fourth-quarter total revenue per available seat mile (TRASM) increased by 1.7% compared to the fourth quarter of 2017 on a 1.4% increase in total available seat miles.
American's update defies gloom over government shutdown
On January 16, CSX reported fourth-quarter EPS of $1.01 on revenue of $3.14B, compared to forecasts of EPS of $0.99 on revenue of $3.12B.
Delta Air Lines earnings beat analysts' expectations on January 15, with fourth-quarter EPS of $1.3 on revenue of $10.74 billion fractionally ahead of expectations.
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