American Airlines Hikes Profit Guidance. Why the Stock Is Falling.


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American Airlines Group stock was down 9.2% in Wednesday morning trading after the carrier’s updated profit outlook fell short of expectations for the first quarter.

American Airlines (ticker: AAL) said it expects to post adjusted earnings per share of between one and five cents when it reports earnings later this month. That’s an improvement on its previous guidance of approximately break-even, but it falls below analysts’ expectations of five cents per share, according to FactSet data.