American Airlines reported its first quarter earnings Friday before the market open as the industry copes with the ongoing grounding of Boeing’s 737 Max jets.
American Airlines shares fell more than 3% before the market’s open.
Here’s what the airline reported, versus average analysts estimates compiled by Refinitiv:
- Adjusted earnings: 52 cents vs 51 cents per share forecast
- Revenue: $10.58 billion vs $10.59 billion forecast
American raised its fiscal year 2019 fuel cost guidance by $650 million due to higher oil prices.
American has grounded its 24 Boeing 737 Max jets through August after the anti-stall software was identified as problematic in two fatal crashes in Ethiopia and Indonesia. American has had to cancel about 115 flights per day, roughly 1.5% of its total capacity per day in the summer.
The carrier cut its revenue guidance in April, but didn’t provide estimates of the exact financial impact the grounding will have at that time.
It’s unclear when the Max, which has been grounded since mid-March, will return. Boeing has stopped all deliveries and cut production by 20%, and said it’s completed 96 flights totaling over 159 hours of air time with the new Max software fix.
Southwest on Thursday reported that the Max groundings, as well as the U.S. government shutdown and some maintenance issues, collectively cost the airline more than $200 million in revenue.