American Airlines Group Inc (NASDAQ:AAL, ETR:A1G) descended on Thursday after detailing losses would be steeper than analysts’ expectations over the first quarter.
Per share, adjusted losses were set to sit between US$0.20 and US$0.40 for the first three months of the year, against market projections for US$0.04.
Though forecasted full-year earnings of US$1.70 and US$2.70 were in line with expectations, the weaker first quarter outlook contrasted with brighter guidance from rivals Delta and United recently.
Unit costs excluding fuel were expected to climb by low-single-digit percentage points over the quarter, while capacity was seen falling, the airline added.
Fourth quarter figures had surpassed expectations, however, with earnings sitting at US$0.86 a share on record revenue of US$13.7 billion.
Passenger figures over the year were said to have hit a new peak, with chief executive Robert Isom noting a number of key objectives had been met.
“We continue to run a reliable operation, and we are reengineering the business to build an even more efficient airline,” he said.
American had grappled with the fallout of a failed strategy to push for direct sales instead of via travel agencies last year.
Shares dropped 8.8% to US$17.02 on Thursday.