American Airlines’ weak profit forecast sends rivals’ stocks tumbling

  • 📰 nypost
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 67%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

American indicated that demand is still about as strong as it predicted in January, but the stay-the-course update came as analysts cautioned investors about a slowdown in travel bookings.

Bank of America analyst Andrew Didora said this week that his bank’s data shows that airline bookings have slowed since mid-March, “and we have become a bit more cautious on 2Q23 revenues.” He lowered second-quarter revenue estimates for the big airlines by up to 2%.

Baker said, however, that international bookings are still up significantly over last year. He suggested the geographic breakdown in travel is returning to a normal pattern after tilting more than usual toward domestic trips last year. Delta Air Lines will be the first major airline to report first-quarter results on Thursday, but American’s update might have provided a glimpse of what is to come.

Just the day before, Didora, the Bank of America analyst, said he expected American to report a profit of 9 cents per share. Raymond James analyst Savanthi Syth said she had expected better from American because it benefits more than others from strong demand for travel within the US and nearby destinations in Latin America.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 91. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves midday: MongoDB, American Airlines and moreTake a look at some of the stocks making the biggest moves on Wednesday, April 12.
Source: CNBC - 🏆 12. / 72 Read more »