Earning Update of American Airlines Group Inc. (AAL)

American Airlines Group Inc. (AAL) stated its first-quarter results, including these highlights:

Stated a first-quarter 2018 pre-tax profit of $273M, or $468M not including net special items1, and a first-quarter net profit of $186M, or $357M not including net special items

First-quarter 2018 earnings were $0.39 per diluted share, or $0.75 per diluted share not including net special items

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Returned $498M to shareholders, including the repurchase of 8.4M shares and dividend payments of $48M. Reported a new $2.0B share repurchase authorization2 to be completed by December 31, 2020

Robust demand for air travel drove a 5.9 percent year-over-year increase in first-quarter 2018 total revenue, to a first quarter record $10.4B. Passenger revenue per accessible seat mile (PRASM) grew in all geographic regions, with notable strength in Latin America. Cargo revenue was up 18.8 percent to $227M due primarily to a 10.9 percent increase in volume and a 7.1 percent increase in cargo yield. Other revenue was up 10.0 percent to $694M. First-quarter total revenue per accessible seat mile increased by 3.5 percent contrast to the first quarter 2017 on a 2.3 percent increase in total accessible seat miles. This marks the sixth consecutive quarter of positive unit revenue growth and the second quarter in a row where all geographic regions showed PRASM growth on a year-over-year basis.

American Airlines Group Inc. (AAL) stock price distance from twenty day simple moving average slumped at -9.46% while its distance from fifty day simple moving average declined -15.54% along with -13.82% below distance from two hundred simple moving averages. On technical aspect, moving averages may help to distinguish path of dispositions, and they may also be used to set degrees of support and resistance. Tracking the stock price in relation to moving averages as well as highs and lows for the year might assist with evaluating future stock performance.

The Stock has Weekly volatility of 4.20% and monthly volatility of 3.78%. Tracking most recent quarter period, Price to book (P/B) ration is at 5.15 and Price to cash per share ration is at 4.04. Beta value of the stock is marked at 0.93. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security’s price will be more volatile than the market. The company has a Return on Assets (ROA) of 3.70%. Presently, it has a Return on Equity (ROE) of 51.00% and Return on Investment (ROI) of 12.80%.

Total first-quarter 2018 operating expenses were $10.0B, up 9.8 percent year-over-year driven by a 25.7 percent increase in consolidated fuel expense. Had fuel prices remained unchanged versus the first quarter 2017, total expenses would have been $412M lower. Total first-quarter 2018 cost per accessible seat mile (CASM) was 15.15 cents, up 7.3 percent from first-quarter 2017. Not Including fuel and special items, total first-quarter CASM was 11.57 cents, up 2.8 percent year-over-year.