American Airlines swung to a loss in the first quarter, but its forecast for the current period surpassed analysts' estimates.
American expects to earn between $1.15 and $1.45 per share in the second quarter, on an adjusted basis, largely above the $1.18 that analysts compiled by LSEG estimated on average. American reiterated its forecast to earn between $2.25 and $3.25 per share for the full year.
“While we aren't satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets,” CEO Robert Isom said in an earnings release.
American said it expects second-quarter capacity to be up 7% to 9%, and unit revenues to fall 1% to 3% from last year.
Similar to Southwest, United and Alaska, American is affected by Boeing's latest quality control and safety crises. American will receive seven fewer aircraft from Boeing than it previously projected, Isom said, adding that he did not expect a material impact from the delays.
“My message is Boeing hasn't changed since the last time we talked,” Isom told CNBC in an interview. “Get your act together. Deliver.”
Here is how American performed in the first quarter compared with Wall Street estimates compiled by LSEG:
- Loss per share: 34 cents adjusted vs. an expected loss of 29 cents
- Revenue: $12.57 billion vs. $12.60 billion expected
American posted a loss of $312 million, or 48 cents per share, in the first quarter, compared with a profit of $10 million, or 2 cents per share, during the same period a year earlier. Adjusting for one-time items, including costs associated with new labor contracts, American lost $226 million, or 34 cents per share.
Operating expenses rose nearly 7%, including an 18% rise in salaries and related costs.
Revenue rose 3.1% to $12.57 billion.
— CNBC's Phil LeBeau contributed to this report.
Don’t miss these exclusives from CNBC PRO
- Here are Thursday's biggest analyst calls: Nvidia, Meta, Tesla, IBM, UPS, Five Below, Amazon, TJX Companies & more
- Here's where to invest $1 million right now, according to the pros
- Forget Nvidia: Morgan Stanley says Intel's much-hyped AI chip will boost 3 global stocks
- These 5 stocks will power the AI revolution as data centers spread and electricity demand doubles, says Bank of America
- Earnings playbook: Your guide to trading a huge week of reports, including Meta Platforms
News Related
-
TAIPEI – A five-month rally in MediaTek looks set to extend as booming demand for smartphones and a promising new AI chip brighten the company’s outlook. The Taiwanese tech firm’s stock has soared almost 40 per cent since the end of June, outperforming a 2 per cent advance in the ...
See Details:
AI chip boom fuels MediaTek’s 40% rally, beating Qualcomm and peers
-
-
SINGAPORE – The Chinese Swimming Club (CSC) has secured a 30-year lease renewal for its sports complex at Amber Road. The move comes after four years of negotiations with the authorities, and was fully funded by the club’s reserves, CSC said on Monday. The announcement comes a week after news ...
See Details:
Chinese Swimming Club renews lease of Amber Road site for another 30 years
-
SEATTLE – US shoppers will spend as much as US$12.4 billion (S$16.6 billion) online during Cyber Monday (Nov 27), according to Adobe, which adjusted its initial forecast of US$12 billion upward based on stronger-than-expected spending on Black Friday (Nov 24) and the popularity of buy-now-pay-later features that let shoppers stretch ...
See Details:
Cyber Monday forecast boosted after record online holiday sales
-
Philanthropy can be a source of catalytic and patient capital, and as such, can play a big role in the net zero transition. Blended finance is an avenue where philanthropists can join forces with public and private funds. Genevieve Cua speaks to Anthony Gao, head of philanthropy services Asia with ...
See Details:
WealthBT Podcast: Powering up philanthropy for climate goals
-
NEW YORK – Wall Street stocks ticked down Monday, coming off a fourth straight week of gains, as investors eye retail spending and other upcoming economic data. The Dow Jones Industrial Average slipped 0.2 per cent to 35,333.47. The broad-based S&P 500 dipped 0.2 per cent to 4,550.43, while the ...
See Details:
US stocks pull back after weeks of gains
-
NEW YORK – Binance Holdings former chief executive officer Zhao Changpeng can’t return to his home in the United Arab Emirates for now, a federal judge in Seattle ruled. US District Judge Richard Jones on Monday put on hold a ruling granting the billionaire’s request to return to the UAE ...
See Details:
Former Binance CEO Zhao Changpeng must stay in US for now, judge says
-
-
-
-
Sports Illustrated scrubbed its site of AI-generated content that included bylines and photos for authors that don’t exist, according to a report.The publication — once home to authors like John Updike, Hunter Thompson and Frank DeFord – used artificial intelligence to produce poorly written product reviews and posted them under ...
See Details:
New York's cannabis board votes to settle lawsuits that have stalled legal dispensaries
-
-
Sports Illustrated scrubbed its site of AI-generated content that included bylines and photos for authors that don’t exist, according to a report.The publication — once home to authors like John Updike, Hunter Thompson and Frank DeFord – used artificial intelligence to produce poorly written product reviews and posted them under ...
See Details:
Cyber Monday sales set to reach $12.4 billion thanks to deal-hunters
-
Sports Illustrated scrubbed its site of AI-generated content that included bylines and photos for authors that don’t exist, according to a report.The publication — once home to authors like John Updike, Hunter Thompson and Frank DeFord – used artificial intelligence to produce poorly written product reviews and posted them under ...
See Details:
Texas' new power grid problem
OTHER NEWS
A Shein Group Ltd. pop-up store inside a Forever-21 store in the Times Square neighborhood of New York, US, on Friday, Nov. 10, 2023. Yuki Iwamura | Bloomberg | Getty Images ...
Read more »
EU regulators say Amazon's acquisition of vacuum maker iRobot may harm competition European regulators say Amazon’s proposed acquisition of robot vacuum maker iRobot may harm competition ByHALELUYA HADERO AP business ...
Read more »
Argentina's right-wing president-elect to meet with a top Biden adviser Argentine President-elect Javier Milei is getting a meeting with a top Biden aide ByAAMER MADHANI Associated Press and DANIEL POLITI ...
Read more »
Texas CEO and his 2 children were among 4 killed in wreck before Thanksgiving The CEO of a construction company and his two young children were among four people killed ...
Read more »
How major US stock indexes fared Monday, 11/27/2023 Stocks edged lower on Wall Street as markets look ahead to updates on inflation and how American consumers are feeling about the ...
Read more »
Moderna has hired a former FBI agent to compile internal company reports about “high-risk” celebrities — including tennis star Novak Djokovic, tech mogul Elon Musk and actor Russell Brand — ...
Read more »
Meta CEO Mark Zuckerberg and other top brass at the social media giant were well aware that millions of users on Instagram are underage, according to newly released claims in ...
Read more »