American Airlines Profits Cut Sharply By High Fuel Costs
DALLAS (CBSDFW.COM/AP) — Higher fuel costs slashed third-quarter profit at American Airlines by nearly half, and the company says it is responding by growing more slowly and cutting unprofitable flights.
The shares are climbing in trading before Thursday's opening bell.
Fort Worth-based American Airlines Group Inc. earned $341 million, down 48 percent from a year ago.
Excluding non-recurring items, American earned $1.13 a share, matching a FactSet forecast.
Revenue is up 5 percent to $11.56 billion, but fuel is up too — by more than 40 percent.
CEO Doug Parker says the company will reduce its planned growth, cancel unprofitable flights and delay taking new planes.
American expects a key measure of revenue per seat to rise in the fourth quarter.
Shares are up $1.04, or 3.4 percent, to $31.38, in early trading.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)