American Airlines It swung into a loss in the first quarter, but its forecast for the current period is higher than analysts had expected.
American is expected to earn between $1.15 and $1.45 per share in the second quarter on an adjusted basis, significantly above the average estimate of $1.18 among analysts compiled by LSEG. American reiterated its forecast for full-year earnings between $2.25 and $3.25 per share.
“Although we are not satisfied with our first quarter financial results, our foundation is strong and we are on track to meet our full-year financial targets,” CEO Robert Isom said in an earnings release.
American said it expects second-quarter capacity to increase 7% to 9%, and unit revenue to fall 1% to 3% from last year.
similar to Southwest, United And alaskaThe US is hit by Boeing’s latest quality control and safety crisis. Isom said American will receive seven fewer planes from Boeing than previously estimated, adding that he did not expect any material impact from the delay.
“My message is that there has been no change at Boeing since the last time we spoke,” Isom told CNBC in an interview. “Do your job right. Deliver.”
Here’s how the American fared first quarter Compared to Wall Street estimates compiled by LSEG:
- Loss per share: Adjusted loss of 34 cents versus expected loss of 29 cents.
- Income: $12.57 billion vs. $12.60 billion expected
American reported a first-quarter loss of $312 million, or 48 cents per share, compared with a profit of $10 million, or 2 cents per share, during the same period a year earlier. Adjusting for one-time items, including costs associated with new labor contracts, American lost $226 million, or 34 cents per share.
Operating expenses increased nearly 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.