AAL shares slid despite record $16.74 billion revenue and $0.15 EPS as rising fuel expenses cloud third-quarter outlook.
American Airlines reported second-quarter adjusted earnings of $0.15 per share, surpassing Wall Street estimates of $0.03. Revenue hit a record $16.74 billion, up 16.3% year over year, driven by strong demand across premium, domestic, and international segments.
Fuel costs surged by $2.2 billion, or 83%, compared to the same period last year, pressuring margins. The company noted that revenue growth offset nearly half of the fuel expense increase, but the outlook for the third quarter remains cautious.
Shares fell about 8% in Thursday trading as investors weighed the earnings beat against rising fuel costs and a less optimistic forward view.