AAL cuts 2024 adjusted EPS guidance to a range of -$0.65 to $0.65 after fuel expenses jump $2.2 billion year over year.
American Airlines lowered its full-year adjusted earnings per share guidance to between -$0.65 and $0.65, down from a prior range of -$0.40 to $1.10. The midpoint of the new range implies zero profit for 2024 despite record revenue of $16.7 billion in Q2.
Second-quarter results showed a 16.3% year-over-year revenue increase, with GAAP net income of $71 million, or $0.11 per share. Adjusted net income was $99 million, or $0.15 per share. However, fuel expenses surged 83.3% to $4.05 per gallon, adding $2.2 billion in costs—over 13% of quarterly revenue.
Shares initially fell 8% to $13.56 after the report but rebounded 6.8% the next day to $14.48, erasing much of the loss.