American Airlines Group, Inc. (NASDAQ:AAL) shares rose on Thursday after the airline released its fourth-quarter and full-year outlook. The company expects TRASM to be flat to up 1%, better than previously forecasted.
In terms of cash earnings, American Airlines projects a 5% to 6% increase in CASM-Ex, primarily driven by higher profit-sharing accruals due to expected increased earnings. The airline also raised its adjusted EPS guidance to $0.55 to $0.75, beating analyst estimates of $0.39.
A new agreement with Citigroup, Inc. (NYSE:C) is set to begin in January 2026 and will drive a 10% annual growth in cash remuneration from co-branded credit card partnerships. This partnership is expected to bring in approximately $10 billion in annual revenue, leading to a pre-tax income increase of around $1.5 billion compared to 2024.
The airline’s shares are currently trading higher by 14.08% at $17.08. With this new agreement and stronger earnings outlook, American Airlines is projecting significant growth opportunities for its financial outlook.
Source: https://finance.yahoo.com/news/american-airlines-partners-citi-issues-170016822.html