American Airlines swings to a loss, but tops estimates for Q2 forecast

American
Airlines
swung
to
a
loss
in
the
first
quarter,
but
its
forecast
for
the
current
period
surpassed
analysts’
estimates,
sending
shares
roughly
5%
higher
Thursday.

American
expects
to
earn
between
$1.15
and
$1.45
per
share
in
the
second
quarter,
on
an
adjusted
basis,
largely
above
the
$1.18
that
analysts
compiled
by
LSEG
estimated
on
average.
American
reiterated
its
forecast
to
earn
between
$2.25
and
$3.25
per
share
for
the
full
year.

“While
we
aren’t
satisfied
with
our
first-quarter
financial
results,
we
have
a
strong
foundation
in
place,
and
we
remain
on
track
to
deliver
on
our
full-year
financial
targets,”
CEO
Robert
Isom
said
in
an
earnings
release.

American
said
it
expects
second-quarter
capacity
to
be
up
7%
to
9%
and
unit
revenues
to
fall
1%
to
3%
from
last
year.

Like


Southwest,


United
and


Alaska,
American
is
impacted
by
Boeing’s
latest
quality
control
and
safety
crises.
American
will
receive
seven
fewer
aircraft
from
Boeing
than
it
previously
projected,
Isom
said,
adding
that
he
didn’t
expect
a
material
impact
from
the
delays.

“My
message
is
Boeing
hasn’t
changed
since
the
last
time
we
talked,”
Isom
told
CNBC
in
an
interview. “Get
your
act
together.
Deliver.”

Here’s
how
American
performed in
the

first
quarter compared
with
Wall
Street
estimates
compiled
by
LSEG:

• 
  Loss
  per
  share: 34
  cents
  adjusted
  vs.
  loss
  of
  29
  cents
  expected
• 
  Revenue: $12.57
  billion
  vs.
  $12.60
  billion
  expected

American
posted
a
loss
of
$312
million,
or
48
cents
per
share,
in
the
first
quarter,
compared
with
a
profit
of
$10
million,
or
2
cents
per
share,
the
same
period
a
year
earlier.
Adjusting
for
one-time
items,
including
costs
associated
with
new
labor
contracts,
American
lost
$226
million,
or
34
cents
per
share.

Operating
expenses
rose
nearly
7%,
including
an
18%
rise
in
salaries
and
related
costs.

Revenue
rose
3.1%
to
$12.57
billion.

—
CNBC’s
Phil
LeBeau
contributed
to
this
report.