American Airlines trims quarterly revenue forecast under Boeing cloud
The carrier also cuts its first-quarter outlook for margins, citing higher fuel prices forcast
Bengaluru — American Airlines Group on Tuesday trimmed its first-quarter revenue forecast after cancelling hundreds of flights during the period, mainly due to the global grounding of Boeing’s 737 MAX. American owns 24 MAX jets, the brand-new, fast-selling Boeing aircraft whose use was suspended around the world in March following two deadly crashes. Shares of American fell 3% after the airline said it now expects revenue per available seat mile, a closely followed measure of performance, to be flat to up 1 percent compared with the prior forecast of flat to 2% growth. The No 1 US airline said it will extend cancellations of 90 flights a day until June 5, an indication that the Boeing aircraft may not return to service soon.
The carrier also cut its first-quarter outlook for margins, citing higher fuel prices. Excluding special items, the company now expects pre-tax margin to be about 2% to 4%, compared with its prior forecast of 2.5% to 4.5%.Smaller rival Southwest Airline...