An American Airlines Boeing 737 arrives from Austin at JFK International Airport in New York as the Manhattan skyline looms in the background, February 7, 2024.
Charly Triballeau | Afp | Getty Images
American Airlines posted a loss in the first quarter, but its guidance for the current period beat analysts’ estimates, sending shares up about 5% on Thursday.
American expects to earn between $1.15 and $1.45 per share in the second quarter on an adjusted basis, well above the $1.18 average estimated by analysts compiled by LSEG. American reiterated its forecast of earnings between $2.25 and $3.25 per share for the full year.
“While we are not satisfied with our first quarter financial results, we have a strong foundation and remain on track to achieve our full year financial goals,” CEO Robert Isom said in a results release.
American said it expects capacity to increase 7% to 9% in the second quarter and unit revenue to decline 1% to 3% compared to last year.
Like Southwest, United and Alaska, American is being hit by Boeing’s latest quality control and safety crises. American will receive seven fewer aircraft from Boeing than expected, Isom said, adding that he did not expect a material impact from the delays.
“My message is that Boeing hasn’t changed since the last time we spoke,” Isom told CNBC in an interview. “Pull yourself together. Deliver.”
Here’s American’s first-quarter performance compared to Wall Street estimates compiled by LSEG:
- Loss per share: 34 cents adjusted versus expected loss of 29 cents
- Income: $12.57 billion versus $12.60 billion expected
American reported a loss of $312 million, or 48 cents per share, in the first quarter, compared with a profit of $10 million, or 2 cents per share, in the same period a year earlier. Taking into account one-time items, including costs associated with new employment contracts, American lost $226 million, or 34 cents per share.
Operating expenses increased by almost 7%, including an 18% increase in salaries and related costs.
Revenue rose 3.1% to $12.57 billion.
— CNBC’s Phil LeBeau contributed to this report.
News Source : www.cnbc.com
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