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Sunday, July 3, 2022

American Airlines Group Inc. (AAL) stock gained in the Pre-market; here is why?

American Airlines Group Inc. (AAL) gained in the pre-market after updating its Q1 financial guidance. AAL stock values at $18.10, gaining more than 5.5% from the previous close. AAL stock closed at $17.13 at the end of the last trading session with a trading volume of 47.39 million shares.


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The Global Passenger Airline Industry Overview

The global passenger airline industry includes the services such as passenger air transportation goods and services by organizations or companies that require different aircrafts such as airplanes and helicopters. The player in this industry can offer either planned or non-scheduled air services.

Domestic and international flight travelers make up the majority of this market category. The market is separated into three primary categories: business class, economic class, and private vs. commercial.

The global passenger industry was valued at around $524 billion in 2021. According to statistics, the international passenger airline industry market size will reach $588 billion with a compound annual growth rate of 12.2%. The estimates also show that the global passenger airline industry would be worth around $1.14 trillion in 2026, with a compound annual growth rate of 18%.

AAL: Q1 2022 Guidance

American Airlines Group Inc. (AAL) has announced today that they have updated its financial estimates for the first quarter of 2022.

They are expecting revenue of $8.89 billion in Q1, which is down 16% compared to the situation before the pandemic in 2019. Although inflationary pressures impact consumer demand, this is an improvement above the company’s most recent projection of 17%.

The airline reported a 10.7 percent decrease in capacity, which flew 59.5 billion total seat miles in the first quarter of 2019. According to current projections, the cost per available seat mile is likely to rise by 12 and 13 percent, respectively.

In Q1 2022, fuel prices are predicted to be between $2.80 and $2.85 per gallon, with 895 million gallons of gas used.

Conclusion

American Airlines Group Inc. (AAL) stock has gained 20% in the last month. Summer is arriving, and tourism can see a boom in the industry after the pandemic situation, ultimately resulting in the company’s revenue.

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