trending Market Intelligence /marketintelligence/en/news-insights/trending/zcq7_o7_elkkktqvsjk3ow2 content esgSubNav
In This List

American Airlines shares fall after raising fuel cost, unit revenue outlook

Blog

COP26: Implications for the Financial Sector

Blog

Global 5G Survey: Operators push past COVID-19 to accelerate 5G network upgrades

Blog

Banking Essentials Newsletter 2021: December Edition

Blog

Investment Banking Essentials Newsletter 2021: December Edition


American Airlines shares fall after raising fuel cost, unit revenue outlook

Shares of American Airlines Group Inc. fell in morning trading after the U.S. carrier hiked its forecast for a key performance metric and fuel costs for the third quarter.

American Airlines is now expecting year-over-year growth of 2.0% to 3.0% in third-quarter total revenue per available seat mile, or TRASM, compared to a prior guidance of a 1.0% to 3.0% increase.

"The change in TRASM vs. previous guidance is due primarily to stronger domestic yields," the company said in an update to investors.

American Airlines also raised its fuel cost guidance for the third quarter, projecting an average fuel price of $2.28 per gallon to $2.33 per gallon, compared to the previous forecast range of $2.22 per gallon to $2.27 per gallon.

The company expects to record about $230 million in total pretax net special items in the third quarter.

American said Hurricane Florence caused the cancellation of 2,100 flights in September, reducing third-quarter revenue by $55 million and TRASM by 50 basis points.

The hurricane's negative impact on pretax income was estimated at $50 million, the company added.

American Airlines shares were down 4.01% to $34.46 at 10:15 a.m. ET.