Nathan Howard | Reuters
American said it could post an adjusted per-share loss of 40 cents up to earnings of $1.10 a share, lower than the per-share earnings of $1.70 to $2.70 it forecast in January, though Wall Street analysts have been lowering their forecasts for the industry since the U.S.-Israel attacks on Iran this year.
Here is what American reported in the first quarter compared with Wall Street estimates compiled by LSEG:
- Loss per share: 40 cents adjusted vs. loss of 47 cents expected
- Revenue: $13.91 billion vs. $13.79 billion expected
For the first quarter, American posted a net loss of $382 million, or 58 cents per share, compared with a net loss of $473 million, or 72 cents, a year earlier. Adjusting for one-time items, the company reported a loss of 40 cents per share.
Its first-quarter revenue of $13.91 billion was up 10.8% from revenue of $12.55 billion a year earlier.
Airlines have been either cutting their full-year forecasts or holding off on further forecasts because of volatile prices for jet fuel, generally their biggest expense after labor. They are also pulling back on their capacity growth plans to cut costs, which can drive up airfare when fewer seats are for sale.
“We’re going to recover, but key to that is just supply and demand balance,” CEO Robert Isom told CNBC’s Phil LeBeau on Thursday. “We’re going to be quick to make sure that we adjust our flying if we need to.”
— CNBC’s Michele Luhn contributed to this report.
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