American shares drop 7% on weak profit forecast after backfired sales plan, industry oversupply

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American Airlines Group Inc Nouvelles

Economy,Airlines,Travel

The carrier's profit fell 46% during the second quarter even though revenues rose.

The carrier has been grappling with an industry-wide oversupply of flights and a direct-to-consumer sales strategy it adopted that backfired.An American Airlines Boeing 737 MAX 8 aircraft approaches San Diego International Airport for a landing from Phoenix on June 28, 2024 in San Diego, California.is forecasting a drop in unit revenue of as much as 4.5% for the third quarter as high demand failed to make up for an industry-wide glut of flights that have forced airlines to slash fares.

The Fort Worth, Texas-based airline also forecast full-year adjusted earnings of between 70 cents and $1.30 per share, far shy of the $1.10 to $2.60 per share Wall Street analysts were expecting, according to LSEG.that it has "taken swift and aggressive action to reorient its sales and distribution strategy" after complaints from travel agents and customers.$14.33 billion vs. $14.

Southwest's profit fell 46% during the second quarter to $717 million, or $1.01 per share, even though revenues rose 2% to $14.33 billion.How Delta made itself America's luxury airline — and what United wants to do about it

 

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