American Airlines cuts profit outlook, sending shares down more than 8% - CNBC CNBC - Thu 10 Jan 18:24 GMT
American Airlines tumbled Thursday after the carrier cut its profit forecast and issued revenue guidance at the low end of its range, casting more gloom over the airline sector that has largely struggled more than the broader market.
American Airlines shares tumbled Thursday, after the largest U.S. airline cut its profit estimate for 2018 and warned investors that it struggled to grow revenue toward the end of the year.
The cuts dealt another blow to airline stocks, which have largely lagged the broader market over the past year as investors fretted about higher fuel costs and the industry's ability to increase fares and revenue.
American shares were off more than 5 percent in afternoon trading, paring a chunk of its losses from earlier in the session.
American said its revenue per available seat mile, a key industry metric, rose 1.5 percent in the fourth quarter of last year from the year-earlier period, compared with a range of 1.5 percent to as much as 3.5 percent it gave investors in the fall.
Over the last 12 months, American's stock price declined 44 percent, ramping up pressure on the company's CEO, Doug Parker, when the company reports fourth-quarter and full-year results on Jan. 24.