What To Expect From American Airlines’ Q2?

American Airlines (NASDAQ: AAL) will report its Q2 2023 results on Thursday, July 20. We expect the company’s revenues to come in at $13.6 billion, slightly below the consensus estimate of $13.7 billion. This would mark year-over-year growth of about 1%. Earnings are likely to come in at about $1.52 on a per-share and adjusted basis, slightly below the $1.54 consensus estimate. See our interactive dashboard analysis on American Airlines Earnings Preview for more details on how American Airlines’ revenues and earnings will likely trend for the quarter. So, what are some of the trends that are likely to drive American Airlines’ results?

The company will likely continue to benefit from the robust travel demand. It should see a continued rise in total available seat miles, and the passenger load factor will likely remain strong. However, it will be a tough comparison with the prior-year quarter, which saw a record travel demand. The average ticket price has also cooled this year while overall capacity has expanded. Looking at Q1 2023, American Airlines’ revenues were up 37%, led by a 42% rise in Passenger revenue. While the ASMs were up 9% in Q1, passenger revenue per available seat mile surged 30% to 17.08 cents.