American Airlines Group Inc.'s stock dropped 1% in premarket trade, after the air carrier lowered its second-quarter outlook for a key traffic metric, as capacity growth continues to outpace increases in traffic. Revenue passenger miles increased 0.7% from a year ago to 19.3 billion, while available seat miles grew 2.1% to 23.3 billion, pushing load factor down by 1.2 percentage points to 82.8%. The company now expects second-quarter passenger revenue per available seat mile (PRASM) to decline 6% to 8% from a year ago, compared with its previous outlook for a 4% to 6% decline, as the outlook for adjusted pretax margin was lowered to a range of 16% to 18% from 17% to 19%. The stock has tumbled 26% year to date through Monday, while the S&P 500 has gained 1%.
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