American Airlines shares slide after boost to revenue growth outlook, but view on capacity cut

Shares of American Airlines Group Inc. AAL,
fell 1.0% in premarket trade on Friday after the airline raised its revenue growth outlook, but cut its capacity forecast and raised its fuel cost estimate. The company now expects second-quarter revenue to be up 11% to 13% from the same period in pre-pandemic 2019, compared to previous guidance of a 6% to 8% rise. . For capacity, the company now expects available seat miles to be down 7% to 8% from 2019 levels compared to previous expectations of a 6% to 8% decline. The average fuel price estimate per gallon was raised to $3.92 to $3.97 from $3.59 to $3.64, and the outlook for cost per available seat mile (CASM) off fuel were raised 10% to 11% above 2019 levels, from 8% to 10%. “Continued increases in the price of jet fuel are expected to drive fuel costs higher in the second quarter compared to previous guidance, while CASM excluding fuel and net special items1 is up from previous guidance due to a slightly lower capacity and higher selling costs,” the company said. in a report. The stock slid 2.8% year-to-date through Thursday, while the US Global Jets ETF JETS,
fell 4.4% and the S&P 500 SPX,
fell 12.4%.