FORT WORTH (CBSDFW.COM/AP) — American Airlines Group Inc. on Friday reported weaker than expected revenue and a dim outlook, and its shares slid in premarket trading.
The company warned that the grounding of the 737 Max will lead to a $350 million hit to 2019 pretax profit. The airline has 24 of Boeing’s 737 Max jets in its fleet.READ MORE: Man Arrested For Allegedly Trying To Rob Chase Bank In Weatherford
American Airlines also said that higher fuel costs will cost $650 million more for the full year than it had forecast just three months ago.
The company posted first quarter earnings of $185 million. On a per-share basis, the Fort Worth-based company said it had net income of 41 cents. Earnings, adjusted for non-recurring costs, were 52 cents per share.
The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 51 cents per share.READ MORE: Family Of 'Kind Hearted, Caring' Man Slain In Oak Lawn Question Robbery As Motive In 'Senseless' Crime
The world’s largest airline posted revenue of $10.58 billion in the period, which did not meet Street forecasts. Eleven analysts surveyed by Zacks expected $10.66 billion.
American Airlines now expects full-year earnings in the range of $4 to $6 per share.
American Airlines shares were down 3.6% in the premarket. The shares have risen 4% since the beginning of the year. The stock has dropped 26% in the last 12 months.MORE NEWS: State Fair Vendors Facing Tight Labor Market
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