Fuel weighs on American Airlines, but it tops forecasts

July 26, 2018 - 6:10 am

FORT WORTH, Texas (AP) — American Airlines is cutting its full-year earnings forecast again after escalating fuel costs weighed on its second-quarter.

The world's biggest airline said Thursday that it now foresees full-year earnings in a range of $4.50 to $5 per share. In April, American cut its forecast for earnings to a range of $5 to $6 per share.

Chairman Doug Parker called it the most challenging since a merger with US Airways five years ago, partly because spiraling fuel costs which led to a more than a $700 million increase in expenses.

American earned $566 million, or $1.22 per share, up from $864 million, or $1.75 per share, last year. Adjusted per-share earnings were $1.63, 4 cents better than what analysts surveyed by Zacks Investment Research were looking for.

Revenue climbed to $11.64 billion from $11.23 billion, about in line with analyst projections.

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