{"id":7451,"date":"2023-04-12T22:23:45","date_gmt":"2023-04-12T22:23:45","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/american-airlines-forecasts-higher\/"},"modified":"2023-04-12T23:50:53","modified_gmt":"2023-04-12T23:50:53","slug":"american-airlines-profit-forecast","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/american-airlines-profit-forecast\/","title":{"rendered":"American Airlines profit forecast disappoints; shares tumble"},"content":{"rendered":"<p>(Reuters) -American Airlines Group Inc on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines in signaling a hit from persistently high labor and fuel costs.<\/p>\n<p>The dull outlook pushed its shares to close 9.2% lower on Wednesday and weighed on those of other major U.S. airlines, which are set to report results this month, starting with Delta Air Lines on Thursday.<\/p>\n<p>Higher fares amid rising global travel have so far helped the airline industry offset a hit from fuel and labor costs, but rising borrowing costs, inflation and job losses have sparked worries about demand.<\/p>\n<p>American&#8217;s first-quarter guidance came in &#8220;mostly at the mid-points&#8221; of the initial set of forecasts it had issued in January, Raymond James analyst Savanthi Syth said.<\/p>\n<p>&#8220;We had expected American to come in towards the better end in a similar manner as JetBlue&#8217;s guidance update provided in mid-March,&#8221;\u00a0Syth added.<\/p>\n<p>The airline industry has been able to survive the broader economic slowdown in the United States, thanks also to tight airline capacity due to shortages of aircraft and spare parts.<\/p>\n<p>American said it expected total revenue per available seat mile, a proxy for pricing power, to be up about 25.5% in the first quarter from a year earlier.<\/p>\n<p>On an adjusted basis, it forecast a quarterly per-share profit of between 1 cent and 5 cents, compared with its previous forecast of a near break-even. Analysts were expecting a profit of 6 cents per share, according to Refinitiv data.<\/p>\n<p>The carrier also slightly trimmed its fuel price forecast to $3.27 to $3.32 per gallon for the first quarter from its prior estimate of $3.33 to $3.38 per gallon. It had paid $2.80 per gallon in the first quarter of last year. <\/p>\n<p>Southwest Airlines Co closed down 1.4%, United was down 6.5% and Delta was down 2.4%.<\/p>\n<p> (Reporting by Aishwarya Nair in Bengaluru; Editing by Shailesh Kuber, Arun Koyyur and Anil D&#8217;Silva)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/american-airlines-signals-profit\/file-photo-an-american-airlines-airbus-a321-plane-takes-off\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3B0FA-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3B0FA-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) -American Airlines Group Inc on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines in signaling a hit from persistently high labor and fuel costs. The dull outlook pushed its shares to close 9.2% lower on Wednesday and weighed on those of other major U.S. airlines, which are set to report results [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":7452,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-7451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3B0FA-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=7451"}],"version-history":[{"count":7,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7451\/revisions"}],"predecessor-version":[{"id":8349,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7451\/revisions\/8349"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/7452"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=7451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=7451"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=7451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}