The company also announced that its COO would be stepping downAmerican Airlines gave investors an update on its earnings expectations for the year Tuesday.
On Wednesday, investors sold a bunch of stock, and shares in the carrier were down 15% in early trading.In a filing with the Securities and Exchange Commission, American said that it was expecting its profit margin, earnings per share, and the amount of money it can squeeze out of a given booking will all be lower this quarter than it had previously expected. One bright spot it mentioned was that fuel costs would be down slightly.Marketwatch reports that analysts had mixed reactions to the update, ranging from Seaport Research Partners analyst Daniel McKenzie saying American’s growth plans had been “premature” and J.P.
Morgan’s calling them “flawed” to TD Cowen’s Helane Becker saying that the airline’s business model would need some tweaking. Separately, Deutsche Bank’s noted that “the investor update did not include an affirmation of the company’s full-year 2024 [earnings per share] guideAmerican also announced that chief commercial officer Vasu Raja would be stepping down next month.
The company will be holding its annual shareholders meeting on June 4.Executives will be speaking at the Bernstein Strategic Decisions Conference Wednesday to provide a fuller update on where things stand.