American Airlines returns to profitability, but second-quarter forecast beats expectations

American Airlines It turned a profit in the first quarter, but its forecast for the current period beat analysts’ expectations.

American Airlines expects second-quarter adjusted earnings in the range of $1.15 to $1.45 per share, above the $1.18 average estimate compiled by LSEG analysts. American Airlines reiterated its full-year earnings per share forecast of $2.25 to $3.25.

“While we are not satisfied with our first quarter financial results, we have a solid foundation and are on track to meet our full-year financial targets,” CEO Robert Isom said in the earnings release.

American Airlines said it expects second-quarter capacity to grow 7% to 9% and unit revenue to decline 1% to 3% from last year.

as Southwest, unity And Alaska, American Airlines is affected by Boeing’s latest quality control and safety crisis. American will receive seven fewer planes from Boeing than previously expected, Isom said, adding that he did not expect the delay to have a material impact.

“My message is that Boeing has not changed since the last time we spoke,” Isom told CNBC, “work together and deliver results.”

Here’s how Americans do in this game compared to Wall Street estimates compiled by the London Stock Exchange Group (LSEG) for the first season:

• Loss per share: Adjusted to 34 cents, an expected loss of 29 cents
• Income: US$12.57 billion, versus US$12.6 billion expected

American Airlines lost $312 million, or 48 cents per share, in the first quarter, compared with a profit of $10 million, or 2 cents per share, a year earlier. After adjusting for one-time items, including costs related to new labor contracts, American lost $226 million, or 34 cents per share.

Operating expenses increased by about 7%, wages and related expenses increased by 18%.

Revenue rose 3.1% to $12.57 billion.

—CNBC’s Phil LeBeau contributed to this report.