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.
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 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.
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.
