Airlines Follow American, Southwest Higher
American Airlines Group opened almost 6% higher after reporting better-than-expected fourth-quarter earnings — capping three quarters of earnings declines. Revenue growth of 3% just met analyst targets. Management projected 2019 earnings between $5.50 and $7.50 a share, vs. analysts' target of $5.91. American shares are down 48% from a January high.
Southwest Airlines angled up almost 5%. The Dallas-based carrier reported fourth-quarter earnings and revenue above analyst estimates. A statement said the company expects a "strong first-quarter 2019 financial performance," and that it was "well-positioned to generate stellar annual after-tax returns on capital in 2019."
Southwest shares are in a possible base pattern, trading 4% below a potential buy point at 55.78.
