American Airlines Earnings: Coming Back Strong, With Cost Growth Offsetting Elevated Yields

American Airlines reported strong first-quarter results as demand for travel remains resurgent. The first quarter put the airline on track to deliver a record year, in terms of revenue and profit, and demand for travel amid constrained capacity buoyed the airline's revenue yield over USD 0.21 per revenue seat mile. We have updated our forecast to reflect higher yields (read ticket prices) in 2023 than we originally forecast, but also American's evolving cost structure, with no net impact to our $21 per share fair value estimate.