2 months ago
Stock Market

American Airlines Forecast Cut Strikes Blow to Sector Midday

Investing.com - Airline shares fell in midday trading Thursday as a profit warning from American Airlines

Investing.com - Airline shares fell in midday trading Thursday as a profit warning from American Airlines Group (NASDAQ:AAL) hit the sector.

The largest U.S. airline cut its 2018 revenue per available seat mile forecast, causing the stock to tumble 8.4%. The outlook cut comes a week after Delta decreased its forecast for the end of the year.

American said it revenue per available seat mile likely rose 1.5% in the fourth quarter of last year from the year-earlier period, compared with prior guidance of a range of 1.5% to 3.5%.

American said profit for the year, excluding items, would be $4.40 to $4.60 per share, down from previous guidance of $4.50 to $5 per share.

Other airline stocks were lower, with Delta Air Lines (NYSE:DAL) down 3.23%, while Southwest Airlines (NYSE:LUV) slipped 3% and United Continental (NASDAQ:UAL) slumped 5%.

JetBlue Airways (NASDAQ:JBLU) was down 4.6%, while Spirit Airlines (NYSE:SAVE) was down 2.9%.

The SPDR S&P Transportation ETF (NYSE:XTN) was down 1.17%.