Why American Airlines Stock Is Losing Altitude Today
American Airlines Group (NASDAQ: AAL) beat quarterly expectations, but its outlook for what's to come wasn't as rosy as some had hoped for. Investors are heading for the exits after the results, sending American shares down as much as 10% for the day and down 8% as of 12:30 p.m. ET.
American and other airlines have used strong post-pandemic demand trends to rebuild balance sheets and boost profitability. The process continued in the fourth quarter, as American's $0.86 per share in earnings on sales of $13.7 billion topped Wall Street's consensus estimates of $0.66 per share in earnings on $13.4 billion of sales.
The airline said it generated $2.2 billion in free cash flow in 2024, allowing it to hit its goal of $15 billion in total debt reduction a year ahead of schedule. American remains focused on debt reduction and ended the year with more than $10 billion in total available liquidity.
Source Fool.com
