American Airlines (NASDAQ:AAL) rolled out its latest quarterly earnings figures Thursday, amassing a profit and sales that surpassed expectations, although aircraft cancellations are slated to harm its 2019 income, pushing AAL stock down close to 5%.
The global airline — hailing out of Fort Worth, Texas — lifted the veil on its second-quarter results as it reached the midpoint of its fiscal 2019. Profit tallied up to $1.82 per share, besting the Wall Street consensus outlook by 4 cents per share.
American Airlines sales increased about 3% when compared to the year-ago period, arriving at $11.96 billion. This figure is also a touch higher than the $11.975 billion that analysts predicted.
Revenue and earnings may be stronger than Wall Street called for, yet 737 Max aircraft cancellations during the quarter lowered the period’s pre-tax income by about $175 million. This move is also projected to reduce fiscal 2019 pre-tax profit by roughly $400 million.
On the positive side of things, American Airlines added that its passenger unit revenue gained 4%, while total unit revenue surged 3.5%. For its third quarter of 2019, the airline sees total unit revenue surging 1% to 3% year-over-year.
As far as full-year earnings go, the airline updated its guidance to now be in the range of $4.50 to $6.00 per share, higher than its previous view of $4.00 to $6.00 per share. The midpoint profit outlook of $5.25 per share, ahead of the $5.16 per share that analysts called for.
AAL stock is falling 4.9% as of Thursday in the early afternoon.