American Airlines (AAL)

[rockland2u]

We maintain our 12-month target price of $70. AAL announces that it expects fourth quarter total revenue per available seat mile (TRASM) to rise 5.0%-6.0% versus prior guidance of up 2.5%-4.5%. It also sees its Q4 pretax margin at 6.5%-7.0% vs. prior 4.5%-6.5% guidance. We think industry momentum on unit revenues is accelerating, and see AAL as a major beneficiary of this trend. We expect AAL to outperform the industry average on unit revenues over the next year, while at the same time we see most U.S. airlines seeing moderate to strong unit revenue growth in 2018. from their lips to Gods ears, WOW, 70PPS?