American Airlines reported second-quarter revenue of $16.7 billion, a company record and a 16.3% increase year over year, but lowered its full-year adjusted earnings guidance to a range between a loss of $0.65 per share and a profit of $0.65 per share. The stock initially fell about 8% to $13.56 before rebounding 6.8% to $14.48 the following day. Management cited an $2.2 billion rise in aircraft fuel expense, an 83.3% increase, as the primary drag on profits, with the average fuel price reaching $4.05 per gallon. The company guided for third-quarter revenue growth of 16% to 19% and expects fuel costs to ease to $3.75 per gallon, though it still forecasts an adjusted loss of $0.70 to $0.10 per share for the period.
American Airlines GroupFuel costs surged 83.3% to $4.05/gallon, driving a $2.2B expense increase and forcing guidance cut.