An American Airlines Boeing 737 airliner from Austin arrives at JFK International Airport in New York as the Manhattan skyline looms in the background on February 7, 2024.
Charlie Tripalo | AFP | Getty Images
The US airline posted a loss in the first quarter, but its forecast for the current period beat analysts' estimates, sending shares up nearly 5% on Thursday.
American expects to earn between $1.15 and $1.45 per share in the second quarter, on an adjusted basis, much higher than the $1.18 that analysts compiled by LSEG estimate on average. American reiterated its earnings forecast of between $2.25 and $3.25 per share for the full year.
“Although we are not satisfied with our first-quarter financial results, we have a strong foundation and remain on track to meet our full-year financial goals,” CEO Robert Isom said in an earnings release.
American said it expects second-quarter capacity to rise 7% to 9% and unit revenue to decline 1% to 3% from a year ago.
Like Southwest, United and Alaska, American has been affected by Boeing's latest quality control and safety crises. American will receive seven fewer planes from Boeing than it previously expected, Isom said, adding that he does not expect a material impact from the delay.
“My message is that Boeing hasn't changed since the last time we talked,” Isom told CNBC in an interview. “Get your act together. Deliver.”
Here's how the Americans performed First Quarter Compared to Wall Street estimates compiled by LSEG:
- Loss per share: 34 cents were revised against an expected loss of 29 cents
- he won: $12.57 billion versus $12.60 billion expected
American reported a loss of $312 million, or 48 cents per share, in the first quarter, compared to a profit of $10 million, or 2 cents per share, in the same period a year earlier. After adjusting for non-recurring items, including costs associated with new labor contracts, American lost $226 million, or 34 cents per share.
Operating expenses increased approximately 7%, including an 18% increase in salaries and related costs.
Revenues rose 3.1% to $12.57 billion.
— CNBC's Phil LeBeau contributed to this report.
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”