American Airlines reported a loss in the primary quarter, but its forecast for the present period beat analysts' estimates.
American expects to earn between $1.15 and $1.45 per share on an adjusted basis within the second quarter, well above the $1.18 average estimate of analysts surveyed by LSEG. American reiterated its guidance to earn between $2.25 and $3.25 per share for the total yr.
“While we are not pleased with our first quarter financial results, we have strong foundations and remain on track to achieve our full-year financial targets,” CEO Robert Isom said in an earnings release.
American expects capability to extend 7% to 9% and unit revenue to say no 1% to three% within the second quarter in comparison with last yr.
Similar to southwest, United And Alaska, American is impacted by recent quality control and safety crises at Boeing. American will receive seven fewer aircraft from Boeing than previously forecast, Isom said, adding that he doesn’t expect the delays to have a major impact.
“My message is that Boeing has not changed since we last spoke,” Isom said in an interview with CNBC. “Pull yourself together. Deliver.”
Here is the performance of the Americans in First quarter compared to LSEG Wall Street estimates:
- Loss per share: 34 cents adjusted versus an expected loss of 29 cents
- Revenue: $12.57 billion versus expected $12.60 billion
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, in the same period last year. Adjusted for one-time items, including costs related to new employment contracts, American lost $226 million, or 34 cents per share.
Operating costs increased nearly 7%, including an 18% increase in salaries and related costs.
Sales rose 3.1% to $12.57 billion.
image credit : www.cnbc.com