American Airlines (AAL) Q3 2023 earnings

An American Airlines Boeing 787-9 Dreamliner takes off from Barcelona Airport in Barcelona on February 24, 2023.

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American Airlines reported third-quarter losses on Thursday and trimmed its earnings forecast for this year, partly due to higher fuel prices.

The carrier said Thursday it expects to earn between $2.25 and $2.50 per share, on an adjusted basis, for the year, down from a July estimate of $3 to $3.75 but largely in line with analysts’ expectations. American said it expects a full-year adjusted operating margin of 7%, down from a previous forecast of a margin as wide as 10%.

For the fourth quarter, American estimates it will break even.

Here’s how American Airlines performed Third quarter Compared to what Wall Street expected, based on average analyst estimates compiled by LSEG, formerly known as Refinitiv:

• Adjusted earnings per share: 38 cents versus expected 25 cents
• Total revenue: $13.48 billion compared to $13.48 billion expected $13.52 billion

While airlines have enjoyed a resurgence in travel since the pandemic ended, especially to international destinations, prices have fallen broadly from last year.

American said it expects fourth-quarter unit revenue to decline 5.5% to 7.5% from a year earlier with unit costs, excluding fuel, rising 5% to 7% year over year and capacity increasing 4.5% to 6.5% over the same period. . For the year 2022.

The company lost $545 million, or 83 cents per share, during the third quarter, down from profits of $483 million, or 69 cents per share during the same period a year earlier. This was the carrier’s first loss since the first quarter of 2022. Capacity was up 7% from last year.

CEO Robert Isom told employees in a memo that “although there have been hurdles along the way, such as significantly higher fuel costs that reduced profits this quarter, our team continues to excel at controlling what we can control, which will make us “Successful.” Regardless of the environment.”

After adjusting for higher costs associated with the new pilot labor agreement, the company reported earnings of $263 million, or 38 cents per share.

Revenue increased by 0.1% compared to the same period last year.

American will hold a call with analysts and media at 8:30 a.m. on Thursday to discuss results and its outlook.