American Airlines Slashes Guidance, Warns of Q3 Loss as Fuel Costs Surge
AAL sits 41% above its 52-week low of $10.09.
Summary
American Airlines cut its full-year outlook to a range of an adjusted loss of 65 cents to a profit of 65 cents per share, down sharply from prior guidance of a loss of 40 cents to a profit of $1.10. The carrier now expects an adjusted loss of 10 to 70 cents per share in Q3, well below the 26-cent profit analysts had forecast. The revision follows a $2.2 billion fuel cost surge in Q2 that nearly erased record revenue of $16.7 billion, and jet fuel prices have spiked again after the U.S.-Iran ceasefire collapsed. Higher fares offset only about half of the fuel cost impact, and the stock fell 3.6% premarket. The guidance cut signals that fuel price pressure is intensifying and will continue to erode earnings through year-end, with the company facing a $6 billion year-over-year headwind related to higher jet fuel prices.
At the time of this announcement, AAL was trading at $14.26 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $9.8B. The 52-week trading range was $10.09 to $18.79. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.