American Airlines Projects Smaller Loss Than Analysts Expect
(Bloomberg) -- American Airlines Group Inc. forecast a smaller third-quarter loss than analysts have been expecting, citing improved operations during the period, and said it is seeing “robust” demand for the winter holidays.
The loss will come in between $620 million and $675 million excluding special items, American said in a regulatory filing Tuesday. Analysts have been anticipating a $720.1 million deficit, according to estimates compiled by Bloomberg. The carrier’s projected loss of 96 cents to $1.04 a share is better than the $1.15 estimated by Wall Street.
Revenue will decline about 25% in the third quarter from two years ago, the Fort Worth, Texas-based company said. It previously forecast a drop of as much as 28% as the coronavirus delta variant slowed bookings.
Operating costs will be slightly better than American predicted in September, rising as much as 11% from the same period in 2019 instead of 12%.
American was little changed at $20.15 at 9:36 in New York. The stock had advanced 28% this year through Monday, the best performance on the S&P 500 Airlines Index.
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