American Airlines Reports $149 Million Loss as Business-Travel Reboot Continues
American Airlines said moves to reset its business-travel strategy were progressing, as it reported a $149 million quarterly net loss.
The airline said it renegotiated contracts with many top corporate customers as it works to win back business, while increasing sales staff and reintroducing benefits for corporate travelers.
American has backed away from an earlier bet that it could coax more travelers to book directly on its website and app. The airline had slashed its sales staff and removed some fares from the channels big companies tend to use.
American on Thursday projected full-year adjusted earnings of between $1.35 and $1.60 a share, up from a range of $0.70 and $1.30 forecast in the prior quarter.
American stock rose in Thursday morning trading.
The carrier in July slashed its annual earnings outlook and said it expected to break even in the third quarter as it contended with an overhang of airline seats that pressured U.S. fares. Rivals including United Airlines and Delta Air Lines have said the glut is easing as carriers—especially discounters—cut back, helping boost ticket prices this fall.
Other highlights from American’s report:
American’s loss narrowed, compared to a $545 million quarterly loss a year earlier.
Third-quarter revenue hit a record $13.65 billion, up 1.2% from a year earlier and above analysts’ projections of $13.5 billion.
Adjusting for one-time items, quarterly earnings totaled 30 cents a share, above the 16 cents projected by analysts.
No comments:
Post a Comment