American Airlines Boosts Guidance But Lags Rivals
American Airlines' (NASDAQ: AAL) recovery from the COVID-19 pandemic accelerated last quarter, according to a recent investor update from the company. That's welcome news for the struggling airline giant.
However, while business is improving faster than previously expected, American continues to trail competitors like Delta Air Lines (NYSE: DAL) in terms of profitability. Combined with the company's weak balance sheet, that will keep American Airlines stock grounded for the foreseeable future.
In early June, American Airlines told investors that booking momentum and load factors (the percentage of seats filled with paying customers) had increased as the summer approached. At that time, the company reaffirmed its initial guidance for revenue to decline 40% compared to the second quarter of 2019 on 20% to 25% less capacity.
Source Fool.com
