American Airlines Lowers Earnings Guidance
October 24 2019 - 8:29AM
Dow Jones News
By Patrick Thomas
American Airlines Group Inc. said Thursday that the continued
grounding of Boeing Co.'s 737 MAX airplanes and other operational
challenges from labor contract negotiations weighed on its results
and annual outlook.
The carrier said it now expects the MAX cancellations will hurt
its full-year pretax income by about $540 million. American's 24
Boeing 737 MAX jets have been grounded since March, crimping its
growth plans.
The company lowered the high-end of its full-year adjusted
earnings guidance to $5.50 a share from $6 a share. The low-end of
the range is $4.50 a share.
The Fort Worth, Texas, carrier reported a profit of $425
million, or 96 cents a share, compared with $372 million, or 81
cents a share, a year ago.
The company reported adjusted earnings of $1.42 a share.
Analysts polled by FactSet were expecting earnings of $1.33 a
share, or $1.40 a share on an adjusted basis.
Revenue rose to $11.91 billion from $11.56 billion a year
earlier, driven by stronger passenger demand. Analysts had expected
$11.94 billion of revenue in the quarter.
"We know that our results should have been better," Chief
Executive Doug Parker said in a statement. "Our third quarter was
impacted by the continued grounding of the Boeing 737 MAX and the
operational challenges resulting from ongoing labor contract
negotiations.""
Shares of the company were off 1% during premarket trading.
The airline reshuffled some executives earlier this month as it
faces operational issues that has hurt its reputation and weighed
on shares in recent months.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
October 24, 2019 08:14 ET (12:14 GMT)
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