American Airlines stock slips after revenue growth outlook raised but capacity view trimmed

Shares of American Airlines Group Inc. fell 1.0% in premarket trading Friday, after the air carrier raised its revenue growth outlook but trimmed its capacity guidance and raised its fuel-cost estimate. The company now expects second-quarter revenue to be up 11% to 13% from the same period in pre-pandemic 2019, compared with previous guidance of up 6% to 8%. For capacity, the company now expects available seat miles to be down 7% to 8% from 2019 levels versus previous expectations of a decline of 6% to 8%. The average fuel price per gallon estimate was raised to $3.92 to $3.97 from $3.59 to $3.64, and the outlook for cost per available seat mile (CASM) excluding fuel was raised to 10% to 11% above 2019 levels from 8% to 10%. “Continued increases in the price of jet fuel are expected to result in higher second quarter fuel costs versus prior guidance, while CASM excluding fuel and net special items1 is up versus prior guidance due to slightly lower capacity and higher selling expenses,” the company said in a statement. The stock has slipped 2.8% year to date through Thursday, while the U.S. Global Jets ETF has declined 4.4% and the S&P 500 has dropped 12.4%.

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