An American Airlines Boeing 737 MAX 8 aircraft approaches San Diego International Airport for a landing from Phoenix on June 28, 2024 in San Diego, California.
Kevin Carter | Getty Images
American Airlines is forecasting a drop in unit revenue of as much as 4.5% for the third quarter as high demand failed to make up for an industry-wide glut of flights that have forced airlines to slash fares.
The carrier’s profit fell 46% during the second quarter even though revenues rose. The carrier has been grappling with an industry-wide oversupply of flights and a direct-to-consumer sales strategy it adopted that backfired.
Here is how American performed in the second quarter compared with Wall Street estimates compiled by LSEG:
- Earnings per share: $1.09 adjusted vs. $1.05 expected
- Revenue: $14.33 billion vs. $14.36 billion expected
Shares of American fell about 8% in premarket trading Thursday.
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