FORT WORTH, Texas — American Airlines Group Inc. (AAL) on Thursday reported second-quarter earnings of $717 million, a 46% drop in profit.
The Fort Worth, Texas-based company said it had a profit of $1.01 per share. Earnings, adjusted for pretax expenses and non-recurring costs, came to $1.09 per share.
American “did not perform to our initial expectations” because of a since-abandoned sales strategy and an oversupply of domestic flights, CEO Robert Isom said. He said the airline was responding with a strategy that boosts profits and “makes it easy for customers to do business with American.”
The company said it would break even in the third quarter — well below Wall Street expectations of 48 cents per share profit in the July-through-September period.
The world’s largest airline posted revenue of $14.33 billion in the period, which did not meet Street forecasts. Seven analysts surveyed by Zacks expected $14.42 billion.
American Airlines expects full-year earnings in the range of 70 cents to $1.30 per share.
American Airlines shares have decreased 26% since the beginning of the year. The stock has dropped 40% in the last 12 months.