American Airlines Group Inc (NASDAQ:AAL, ETR:A1G) shares slipped after the airline forecast revenue per available seat mile, a measure used to compare the efficiency of airlines, will decline between 1% and 3% in the fourth quarter.
This overshadowed a boosted full-year profit forecast of adjusted earnings per share (EPS) in the range of $1.35 to $1.60, up from its earlier forecast of $0.70 to $1.30.
EPS for Q4 is expected to be in the range of $0.25 to $0.50, at the midpoint of $0.38 above the Street consensus of $0.32.
The airline’s third quarter results were ahead of expectations, with adjusted EPS of $0.30 above the consensus $0.16.
Revenue increased 1.2% year-over-year to $13.6 billion, topping estimates of $13.5 billion.
The company highlighted its efforts in updating its sales and distribution strategy to regain corporate clients and agency partners.
During Q3, it reached competitive contracts with large travel agencies and corporate customers and reintroduced Corporate Experience benefits.
“The American Airlines team continues to focus on running a reliable operation and managing costs across the airline,” American Airlines CEO Robert Isom commented.
“We have taken aggressive action to reset our sales and distribution strategy and reengage the business travel community, which we’re confident will improve our revenue performance over time.”
Shares of American Airlines traded down 1.7% at $12.60 in the early afternoon on Thursday.