American Airlines recently reported a loss in the first quarter, but their forecast for the current period is exceeding analysts’ estimates. The airline expects to earn between $1.15 and $1.45 per share in the second quarter, which is mostly above the average estimate of $1.18 by analysts. They also reiterated their forecast to earn between $2.25 and $3.25 per share for the full year.
CEO Robert Isom stated, “While we aren’t satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets.”
American Airlines expects second-quarter capacity to increase by 7% to 9%, with unit revenues expected to decrease by 1% to 3% from last year.
Just like Southwest, United, and Alaska, American Airlines is also affected by Boeing’s latest quality control and safety crises. They will be receiving seven fewer aircraft from Boeing than originally projected, but Isom mentioned that he does not expect a significant impact from the delays.
American Airlines reported a loss of $312 million, or 48 cents per share, in the first quarter, compared to a profit of $10 million, or 2 cents per share, in the same period last year. Adjusting for one-time items, including costs related to new labor contracts, the airline lost $226 million, or 34 cents per share.
Operating expenses rose nearly 7%, with salaries and related costs increasing by 18%. Despite these challenges, revenue still managed to rise by 3.1% to $12.57 billion.
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