American Airlines Shares Plunge After Cutting Profit Outlook on Weak Fares

Jan 10 2019, 1:39 PMJan 10 2019, 2:43 PMJanuary 10 2019, 1:39 PMJanuary 10 2019, 2:43 PM

(Bloomberg) -- American Airlines Group Inc. tumbled after warning that 2018 earnings could be short of its forecast, blaming domestic fares that were weaker than expected.

Adjusted earnings will be $4.40 to $4.60 a share, the Fort Worth, Texas-based carrier said Thursday in a regulatory filing. American had forecast $4.50 to $5, and analysts had anticipated $4.62.

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Market Reaction

American declined 7.4 percent to $30.96 before the start of regular trading in New York. Other major airlines dropped as well. American tumbled 38 percent last year, the biggest drop on a Standard & Poor’s index of five major carriers.

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American reiterated that pretax margin excluding special items would be 4.5 percent to 6.5 percent.
American’s filing
American Air Cuts FY Adj. EPS View

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