High fuel costs cut sharply into American Airlines profit
DALLAS (AP) — Higher fuel costs slashed third-quarter profit at American Airlines by nearly half, and the company said it will respond by growing more slowly and cutting unprofitable flights.
American said Thursday that it expects a key measure of revenue per seat to rise in the fourth quarter.
The shares, which have been battered this year, rose in trading before the opening bell.
American Airlines Group Inc. earned $341 million, down 48 percent from a year ago. Excluding non-recurring items, American earned $1.13 a share, matching the forecast of 16 analysts in a FactSet survey.
Revenue grew 5 percent to $11.56 billion, a company record, even with a $50 million loss from September flights that were canceled during Hurricane Florence.
The increase in revenue was swamped, however, by a jump in fuel costs of more than 40 percent.