American Airlines Profit Disappoints As Capacity Growth Outpaces Demand
- American Airlines released guidance showing profit will fall short of expectations in the first quarter.
- Revenue per seat will be higher than last year but new bookings have slowed recently according to analysts.
- The airline cited higher costs and a 9.2% increase in available seat miles as contributing to weaker than expected earnings.
- Analyst reactions were mixed with some concerned about industry trends and others calling the guidance "better than expected."
- American's stock price fell over 9% in morning trading following the profit warning.
Washington Post 