Among other airline stocks, American Airlines dipped 2%. Revenue of $12.112 billion missed expectations for $12.123 billion. Wall Street expected a 10% gain. Both reported second-quarter earnings below expectations. But they now find themselves short-staffed particularly among pilots and trying to hire as workers demand more from their employers. Join WSJ and watch techs biggest players break techs biggest news. Airline stocks mostly rose on during the regular trading session on Wednesday. "Management teams will also likely be questioned on the characteristics of their booking curves and how they are handling operational issues due to factors such as employee training backlogs and airport staff shortages," she continued. And United projected a jump in costs for the third quarter and the rest of the year. Like most airline stocks, American and United are trading lower so far for the year. The quarter was the first non-GAAP per-share profit for the company since the pandemic began. United Airlines stock traded down 6.5% in premarket action on the stock market today. It said it had only canceled 25 flights, out of more than 30,000 around the globe, during the first seven days of this month. Thousands of flights have been canceled or delayed, amid staffing troubles and severe weather, leaving an uncertain environment for companies and for investors in airline stocks. Authors may own the stocks they discuss. Actual EPS came in at 68 cents. "As a result, the company continues to expect to be profitable for the full year 2022," the company continued. As demand evaporated in 2020, airlines encouraged employees to leave in an effort to control costs and cash-burn. How To Know It's Time To Sell Your Favorite Stock. Still, airline stock investors will be on the lookout for carriers' plans to minimize the damage. Both reports also follow earnings last week from Delta Air Lines (DAL), which said travel demand was still holding up, even as the carrier keeps a lid on adding new flights to shore up service. The results from United and American come as airlines raise ticket prices a reflection of strong demand from passengers willing to pay up, after two years of putting off travel, and rising fuel prices resulting from Russia's war in Ukraine. Analysts expected revenue to jump 78% to $13.331 billion. Special webinar sale: Join IBD Digital and get 2 months of access for $12thats over $57 off! Those costs are expected to be up roughly 16% for the year. In the first quarter, American had long-term debt and finance leases of around $35 billion during the first quarter. American shares have fallen 17.5% since Dec. 31. Biogen's Quarterly Report Was 'Fine' Here's Why Shares Toppled, IBD 50 Stocks To Watch: Penske Automotive Reclaims Key Level And Eyes New Buy Point, Oil Stocks: Baker Hughes Dives On Earnings Miss After Rival Field Service Giant Tops, How Long It Will Take You To Recover From This Bear Market, Rally Gains Steam, But Still Missing This; Tesla Leads Earnings Movers. "We expect American will likely face questions on their outlook for paying down debt.". Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Similar to United, that would be American's first per-share profit during the pandemic. The carrier forecast a third-quarter adjusted operating margin of around 10%. Reach market shark status with 4 weeks of MarketSmith for $29.95 (that saves you $120)! United said it expected that key metric which tallies sales as spread across available seats and flights to improve in the third quarter over 2019.
"We look forward to learning how the different carriers plan on approaching capacity through 2H22 as well as any insights they have on the state of the consumer, risks of any demand destruction due to high ticket prices, and the recovery in international and business travel," Cowen analyst Helane Becker said in a research note on Monday. IBD Stock Of The Day XBI: How To Trade Blazing-Hot Biotech Stocks Without Getting Burned. Airlines have trimmed their flight schedules in an effort to ensure they're sufficiently staffed. BREAKING: Tech Futures Fall As Snap, Intuitive Surgical Dive On Earnings. Delta CEO Ed Bastian, during Delta's earnings call, said the airline was dealing with a "training and experience bubble," rather than trouble hiring. The Bear Market's True Toll: You Need To Work 6 Years Longer, IBD 50 Stock Aims To Break Out Through The Roof To New High, Tech Futures Fall As Snap, Intuitive Surgical Dive On Earnings, Stock Market Rises On Mixed Trading; Tesla And Airlines Lead Action, Stock Market Indexes Fall On Worse Than Expected Jobless Claims And Manufacturing Data, Dow Jones Falls As ECB Raises Rates; Tesla Surges On Strong Earnings, Airline Industry News And Stocks To Watch, Dow Jones Futures Fall With Market Rally Still Missing This; Tesla Rises On Earnings.
United will hold its earnings conference call with airline stocks analysts on Thursday. *Real-time prices by Nasdaq Last Sale. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. "Second quarter revenue improved at a rapid pace and while the company anticipates the economy will slow in the near to medium term, the continuing pandemic recovery is more than offsetting economic headwinds leading to expected revenue and earnings acceleration in the third quarter," United said in a statement. But a smaller flight network pushes costs, per available seat flown one mile, upward, as there are fewer open seats on flights over which to spread those costs. Estimates: Wall Street expected American Airlines to earn 77 cents per share, up from a loss from a year ago.
Get market updates, educational videos, webinars, and stock analysis. Still, the airline said it expected a 16% to 17% jump in adjusted unit costs, excluding fuel, for the third quarter when compared to 2019. The company has said it wants to pay down around $15 billion in debt by the end of 2025. Stock market indexes rose in a quiet but constructive Thursday session, adding to gains for the third day in a 9:37 AM ET Results signaled, however, confidence that travel demand could withstand an economic slowdown in the months ahead. United said it expected third-quarter flight capacity to drop 11% compared to 2019, and 10% in the fourth quarter. United forecast a third-quarter operating revenue increase of around 11% over 2019. Boeing Stock Continues Ascent As Order Pipeline Swells At Farnborough Airshow, Stock Market Continues Friday's Uptrend; Bank And Airline Stocks Pull Up Dow. United carrier reported results late Wednesday, American Thursday morning, as the airline industry tries to manage rebounding travel, a torrent of staffing issues and concerns about rising fare prices, a spike in oil costs and a downturn.
The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Total unit revenue climbed 24% when compared to pre-pandemic levels in 2019. Stock market indexes rose in a quiet but constructive Thursday Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! And it said it expected full-year flight capacity a measure of the size of an airline's network of available flights to be down around 13% this year, when compared to 2019 levels, and up "no more than" roughly 8% next year compared to 2019. 2000-2022 Investor's Business Daily, LLC. The information and content are subject to change without notice. The carrier also said service was improving. United earned $1 per share, below estimates for $1.85 per share. Is American Airlines Stock A Buy Ahead Of Q2 Earnings? All rights reserved. Investors.com will undergo scheduled maintenance tonight from 10:00 PM to 2:00 AM ET and some features may be unavailable. Second-quarter revenue was $13.4 billion. 9:37 AM ET Southwest (LUV) slipped 1.2%. Airline stocks came under pressure early Thursday as United Airlines (UAL) took a hard dive and American Airlines (AAL) traded moderately lower. Use code IBD. Delta lost 3%. United is down 4.5%. Ownership data provided by Refinitiv and Estimates data provided by FactSet. United CEO Scott Kirby warned that risks of a recession, swelling fuel costs and the operational snags "could grow over the next 6-18 months."
Realtime quote and/or trade prices are not sourced from all markets. United said it expected fuel costs to reach $3.81 per gallon in the third quarter, down from $4.18 in the second quarter.