American Airlines Posts Quarterly Declines

By Markets MarketWatch Pulse

Shares of American Airlines Group Inc. were indicating lower in premarket trade Friday after the company reported top- and bottom-line declines for the second quarter. The airline reported net income of $950 million, or $1.68 a share, compared with $1.7 billion, or $2.41, in the year-earlier period. Analysts on average were anticipating earnings per share of $1.68, according to FactSet. Revenue fell 4.3% to $10.36 billion from $10.83 billion in the year-earlier period, just ahead of the consensus estimate of $10.32 billion. Load factor, a key metric for airlines that measures the efficiency of its service as measured through capacity, declined to 82.9% from 83.4%. Shares of American Airlines have underperformed the S&P 500 recently. The stock is down 8.5% in the past three months and 15.5% in the past year, while the index is up 3.5% and 2.4%, respectively.

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