American Airlines Group Inc. late Tuesday slashed its guidance for the current quarter, roughly one month after offering an upbeat take for the three-month period, which includes the height of summer air travel in the U.S.
American said it expects it will report second-quarter adjusted earnings of about $1 to $1.15 a share. That compares to a late April guidance of adjusted EPS between $1.15 and $1.45 for the quarter.
The air carrier did not detail a reason for the lowered guidance. FactSet consensus calls for adjusted earnings of $1.30 a share.
American also said its chief commercial officer, Vasu Raja, is stepping down after two years in the job, and will be replaced by Vice Chair and Chief Strategy Officer Stephen Johnson until a permanent replacement is hired.
Shares of American AAL, -2.89% dropped 6.3% in the extended session, after ending the regular trading day down 2.9%.
United Airlines Holdings Inc. UAL, -2.11% also gave investors new information about its guidance for the second quarter. On Tuesday, the airline said it still expected adjusted EPS to be between $3.75 and $4.25.
Instead of expecting 9.5% to 11.5% for the adjusted operating margin, American now thinks it will be 8.5% to 10.5%. It used to be said that the average price of petrol would be between $2.70 and $2.80 a gallon, but now it’s between $2.70 and $2.80.
This year, shares of American have gone down 2%, while the S&P 500 index SPX and the U.S. Global Jets ETF JETS have both gone up about 11%.
