Reported 4 months ago
American Airlines reduced its second-quarter profit forecast due to weaker pricing power, causing its shares to drop about 8% in pre-market trading. The airline now expects adjusted earnings per share between $1.00 and $1.15, down from the previous forecast of $1.15 to $1.45, with a projected decline of 5% to 6% in total revenue per available seat mile. Despite record summer travel demand, American Airlines is revising its outlook as Chief Commercial Officer Vasu Raja is set to leave in June. The company's strategy to differentiate itself from competitors has raised skepticism among analysts, with concerns about its ability to generate substantial revenue and compete effectively with other major carriers like United and Delta.
Source: YAHOO