AMR's (NYSE:AMR) RASM Guidance Exceeds Expectations Says Barclays (NYSE:BCS)

RASM guidance from AMR Corp (NYSE:AMR) came in at 47 percent for the fourth quarter, above the 4.8 percent Barclays (NYSE:BCS) had been looking for.

Barclays commented, "Yesterday (Wednesday), AMR provided encouraging 4Q mainline RASM guidance in excess of what we had been expecting. The carrier expects its 4Q mainline RASM to increase by - 7% (we had been modeling +4.8%)...AMR remains our top pick as we believe margin improvement at AMR should exceed the industry average in 2011. More importantly, cash generation in 2011 should screen best in the industry as the carrier makes a turn from a CapEx-heavy 2010 to a more normalized CapEx year in 2011...We revise our estimates to account for the carrier's 4Q RASM guidance as well as the current fuel curve. Our 4Q estimate increases to ($0.35) from ($0.45), while our FY11 estimate remains at $1.20."

Barclays maintains an 'Overweight' rating on AMR Corp., which closed at $7.95, up $0.24, or 3.18 percent. Barclays has a price target of $18 on them.