American Airlines cuts Q2 EPS guidance; shares fall in afterhours

Investing.com -- American Airlines fell in afterhours trade Tuesday after the airline cut its guidance on second profit as softer demand is expected to dent revenue.

American Airlines Group (NASDAQ: AAL) fell more than 5% in afterhours trading following the news.

The company lowered its forecast for Q2 EPS to a range of $1.00 to $1.15 from $1.15 to $1.45 previously as total revenue per available seat mile, or TRASM, is now expected to decline in a range of 5% to 6%, compared with a prior estimate for a decline of 1% to 3%.

Available seat miles guidance was expected to come in flat, compared with a prior estimate of between 7% to 9% growth.

Operating margins, meanwhile, was also downgraded to a range of 8.5% to 10.5% from 9.5% to 11.5% previously even as the company forecast cost per available seat mile to come in flat to 1% from 1% to 3% and lowered for fuel price to $2.70 to $2.80 per gallon from $2.75 to $2.95 per gallon previously.

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